SEC Chair Paul Atkins says he's optimistic Congress will pass the CLARITY Act, adding the SEC is helping lawmakers with technical assistance.

What happened

SEC Chair Paul Atkins said he is optimistic that Congress will pass the CLARITY Act, a bill aimed at establishing clear rules for crypto markets. Atkins noted that the SEC is actively assisting lawmakers by providing technical assistance and answering questions as the legislation moves forward.

Why it matters for the market

Atkins emphasized that legislation is the best way to create lasting rules for the industry. However, he also stated that if Congress fails to pass the CLARITY Act, the SEC is prepared to step in and craft its own regulations covering market structure and other crypto-related issues.

The CLARITY Act is seen as a potential step toward more stable regulatory conditions for digital assets in the United States. The SEC chair’s comments reflect ongoing efforts to address the regulatory uncertainty that has long plagued crypto markets.

What traders should watch

Market observers view Atkins’ remarks as a signal that the SEC is prioritizing clarity for crypto, whether through legislative or regulatory means. The outcome could influence risk appetite and volatility in the crypto sector, as traders monitor progress in Congress.