Paul Atkins Calls US the World’s Crypto Capital as Congress Fails to Pass CLARITY Act

US SEC Chair Paul Atkins has called the United States the world’s crypto capital while confirming work on Token Taxonomy guidance. His remarks come as Congress remains stalled on passing the Clarity Act, a bill intended to establish a regulatory framework for digital assets. Atkins, testifying before the Senate Banking Committee on February 11, said the SEC is collaborating with the CFTC on “Project Crypto” to build a unified classification system for tokens and ensure fair oversight. 137 Amendments Stall Clarity Act in Senate The Senate Banking Committee’s version of the Clarity Act has attracted 137 proposed amendments, leading to legislative gridlock. Lawmakers, banks, and crypto firms are divided over several key provisions. Section 404, the proposed stablecoin yield ban, remains the most debated point. This section would prevent stablecoin issuers from offering interest or rewards unless tied to transactions or specific reward programs. Traditional banks support the measure to protect deposit bases. However, crypto companies argue it limits innovation. Coinbase CEO Brian Armstrong, as the Coinpaper reported, withdrew support from the bill, citing reduced competition. Despite the disagreement, Atkins said the SEC is “ready to implement a federal framework” once passed and is “committed to supporting innovation while ensuring market integrity.” SEC Prepares Token Taxonomy Guidance As part of its preparations, the SEC is working on formal Token Taxonomy guidance that aligns with the Clarity Act. This guidance will define how digital assets are classified and regulated, especially those that do not fit neatly into current securities laws. The bill also introduces the term ”ancillary assets” for tokens that rely on an issuer’s efforts but are not traditional securities. While this would move oversight away from the Howey Test in some cases, critics warn the SEC may still hold final authority, limiting the CFTC’s role. Atkins addressed this by stating that the SEC will work with the CFTC to “coordinate and clarify token classification” to support the market with “consistent federal standards.” New Rules for DeFi and Dual Oversight Amendments also require decentralized finance (DeFi) platforms to comply with surveillance and recordkeeping obligations. These include Bank Secrecy Act compliance and mandatory transaction monitoring. Industry groups say this threatens privacy and may allow the government too much access to financial data. The bill also proposes that banks be allowed to issue stablecoins under FDIC and OCC oversight, giving them clearer regulatory routes than crypto-native companies. Lawmakers continue to debate whether this creates unequal conditions in the market. Meanwhile, the Senate Agriculture Committee has passed the Digital Commodity Intermediaries Act (DCIA), which offers a narrower framework and defines digital commodities. Several bipartisan amendments to the DCIA failed in earlier votes. March 1 Deadline for Agreement Following a White House meeting on February 10, a March 1 deadline was set to resolve disagreements and finalize the Clarity Act’s language. Senate Majority Leader John Thune may schedule a vote later in the spring if committee consensus is reached. Amid these discussions and criticism, the US SEC Chairman Paul Atkins has confirmed the Commission’s readiness to act, stating, “We will provide guidance and support as Congress builds a digital asset framework fit for the future.”