Woofun AI reports that the U.S. Securities and Exchange Commission published its proposed Regulation Crypto rulemaking last week, outlining oversight mechanisms for digital asset fundraising. This move was immediately contextualized by Lewis Cohen of Cahill Gordon and Reindel LLP, who viewed the proposal as a significant, positive directional shift despite lingering industry demands for broader legislative solutions.

Structurally, the proposal introduces specific provisions tailored to the funding levels and operational models of startups, with detailed compliance guidelines available for review.

Notably, this represents a departure from the current presidential administration's reliance on staff statements, marking a rare instance of formal rulemaking.

However, timing remains a critical constraint, as the SEC must allocate sufficient time to finalize any rules and allow companies adequate periods to comply with the new standards.

Per Woofun AI, political pressure intensified during a press conference last Wednesday, where U.S. President Donald Trump urged Congress to pass the Clarity Act. The event featured SEC Chairman Paul Atkins, CFTC Chairman Mike Selig, Coinbase CEO Brian Armstrong, and Kraken CEO Arjun Sethi, occurring just before the CFTC's Innovation Advisory Committee convened. This alignment of executive and regulatory figures underscores the industry's preference for congressional action over agency-led frameworks.

Selig indicated that his agency is prepared to initiate rulemaking if the Clarity Act fails to become law, highlighting a dual-path regulatory strategy. This stance suggests that while the Clarity Act remains the preferred legislative outcome, the CFTC is positioning itself to fill any regulatory voids through independent action. This marks a pivotal moment in defining the jurisdictional boundaries between federal agencies.