What happened?
Two stories that actually merge into one played out around August 18, 2026.
First: former New York State Governor Andrew Cuomo is publicly pushing for the passage of a law called the CLARITY Act. According to CoinDesk, he describes it as a key tool for connecting crypto markets with traditional financial markets, and he used the phrasing that this law 'has to pass' (CoinDesk).
Second: on the same day, the US securities regulator, the SEC (Securities and Exchange Commission), proposed its own set of rules for digital assets. According to The Defiant, this is a framework named Regulation Crypto Assets (The Defiant).
The throughline is simple: while Congress delays on legislation, the regulator has started to act on its own (The Block).
What exactly is the SEC proposing?
According to the available sources, the proposal has two main parts:
| Element | What it should allow | Source |
|---|---|---|
| Exemption for token issuance | Issuers to raise up to $75 million per year without registering the offering | The Defiant |
| Safe harbor | Exempt certain tokens from the definition of a security and protect them from being treated as an 'investment contract' | Cointelegraph, The Defiant |
An investment contract is a legal concept that US courts use to assess whether a given asset is a security, and therefore falls under the SEC's jurisdiction. Whether a token belongs in this category is exactly the question that disputes in the US have been revolving around for years.
Safe harbor simply means a 'safe port': clearly defined conditions under which certain rules or penalties do not apply to issuers.
Why does Cuomo tie this to the CLARITY Act?
According to CoinDesk, Cuomo argues that the US is falling behind on crypto regulation and that the CLARITY Act is the path to connecting crypto markets with traditional markets (CoinDesk).
The SEC's proposal and the calls for the law address the same problem from opposite ends. The law would give the rules the strength and stability of Congressional approval. The regulator's proposal is faster, but it is a single agency's rule, not a law.
The Block describes the context clearly: Congress is stalled on legislation for digital assets, and so the SEC is stepping in with its own route (The Block).
What is not yet clear?
This is a proposal, not an active rule. Regulatory proposals in the US are usually followed by a comment period and a vote, and only then do they potentially take effect. The exact wording, timeline, and final form could all change.
The verified sources also do not indicate the current status of the CLARITY Act vote in Congress, nor whether and when the SEC will approve its proposal. We likewise do not know exactly how the proposed exemption and safe harbor would combine in practice.
What to watch for with this type of news
With regulatory proposals, the difference between 'proposed' and 'in effect' is crucial. Headlines often blur it. It is useful to track three things: whether the proposal passes the regulator's formal vote, what comments come in from the market, and whether the law also advances in Congress in parallel. charliedesk will follow this development and compare it with what actually happens.