Crypto Playbook & SEC's Project Crypto: The Road Ahead for Entrepreneurs

In mid‑July, after years of enforcement-by-press‑release, the House of Representatives finally passed a market‑structure bill for crypto: the CLARITY Act.

The bill would create an elegant split: 

• The SEC would continue to police crypto assets that actually are securities;
• The CFTC would oversee crypto commodities;
• Both agencies would share oversight of exchanges and custodians. 

It even includes a three‑year safe harbor for decentralized projects to become truly decentralized without the SEC breathing down their necks.¹ 

For entrepreneurs like us, that kind of certainty could be the difference between building in the U.S. and packing our bags for Singapore.

The catch? The bill hasn’t cleared the Senate. There is no law yet. In other words, you can’t raise capital under its protections until the Senate acts and the president signs. 

This week was another waiting game, but the pieces of the broader puzzle moved, and they matter for anyone planning a tokenized future.

Inside the Beltway: The Crypto Playbook and a Senate that still needs to vote

At the end of July, the White House released the President’s Working Group (PWG) report.² Dubbed the “Crypto Playbook,” it endorsed the CLARITY Act and the already‑enacted GENIUS Act (the stablecoin law), while also calling for legislation that:

• Guarantees Americans’ right to self‑custody digital assets
• Ensures peer‑to‑peer transactions without financial intermediaries
• Opposes a central bank digital currency

The playbook frames crypto as a matter of economic freedom and national competitiveness, language normally reserved for tax policy, not tokens. That’s a dramatic pivot from the old “crypto is for criminals” narrative.

Treasury Secretary Scott Bessent drove the point home at the launch event. He celebrated how the GENIUS Act brought clear rules to the stablecoin market and said the next step is passing market‑structure legislation in the Senate.³ 
Secretary Bessent called the CLARITY Act the key to providing clear rules for the entire industry and told entrepreneurs to start companies and launch protocols in the United States. His message: the U.S. wants you here, not offshore.⁴

But the Senate’s posture remains ambiguous. Senate Banking and Agriculture Committees spent August recess drafting their own bill, the Responsible Financial Innovation Act (RFIA), which introduces a new category called “ancillary assets.” RFIA would force dual SEC–CFTC regulation and include mandatory disclosures and anti‑money‑laundering provisions.⁵

It’s a more prescriptive approach than the CLARITY Act and has raised concerns that it might balkanize the market. Senators also floated joint rulemakings and bank‑specific provisions, including allowing banks to engage in digital asset activities once compliance programs are in place.⁶

Both parties are working to reconcile their drafts before September 30, which congressional leadership set as a target for final passage. 

The clock is ticking. With election season heating up, everything that isn’t an appropriations bill gets triaged. Entrepreneurs shouldn’t assume the Senate will rubberstamp the House bill; they may not even vote on it until October. 

In the meantime, look beyond Congress.

Project Crypto: The SEC tries to reinvent itself

The biggest news for builders came from the SEC. On July 31, new chair Paul Atkins introduced “Project Crypto.” In a speech at the America First Policy Institute, he admitted that most crypto assets are not securities, a statement unimaginable under his predecessors.⁷

Atkins promised to move away from enforcement‑driven regulation and told staff to draft clear rules covering token distributions, custody and trading. He also asked them to provide safe‑harbors for initial offerings and token rewards, essentially codifying the CLARITY Act’s safe harbor.⁸

Project Crypto is bigger than one speech. The initiative plans to allow “super‑apps” that offer securities and non‑securities trading, digital payments, and lending in one integrated platform.⁹ It would modernize custody rules, create purpose‑fit disclosures for digital assets, and coordinate with the CFTC. 

In plain English, Atkins wants to drag securities law into the 21st century. Latham & Watkins summarized his directive this way: the SEC should classify digital assets, provide safe harbors for asset distributions, and modernize custody rules.¹⁰ 

These moves are consistent with the CLARITY Act’s approach and signal that, regardless of what Congress does, the SEC is preparing to embrace tokenization.

For entrepreneurs, Project Crypto offers hope and risk. It signals that the SEC no longer believes everything in crypto is a security and is open to pre‑compliance safe harbors. If the initiative yields clear rules by year‑end, companies could start raising capital under the new framework even before the CLARITY Act becomes law. 

The risk is that a change in administration or congressional logjam could derail it. Don’t wait; start structuring your fundraising with multiple regulatory outcomes in mind.

Tax policy enters the chat

The Crypto Playbook didn’t stop at regulatory structure; it also addressed taxation. K&L Gates reported that lawmakers are preparing tax bills that would: clarify when digital assets are securities versus commodities, include them in the wash‑sale rules, provide de minimis exemptions for small transactions, and let mining equipment qualify for accelerated depreciation.¹¹ 

The report also recommended modifying reporting requirements to avoid discouraging innovation and clarifying staking income treatment.¹¹ For entrepreneurs, this means the same Congress that may give you regulatory clarity could also change how you calculate taxable income. 

Factor that into your financial modeling, especially if you plan to raise capital through token sales or tokenized equity.

Entrepreneurs are gearing up, not waiting

Since the House passed the CLARITY Act, entrepreneurs have been positioning themselves to use its safe harbor. Startups have drafted ancillary asset offering documents in anticipation of the Senate’s version, and some have consulted with regulatory counsel about self‑certification processes for digital commodities. 

The Responsible Financial Innovation Act would let issuers self‑certify that a digital asset is an “ancillary asset” and raise up to $75 million over 12 months, subject to specified disclosures and trading restrictions.⁵ 

While not yet law, entrepreneurs are adopting elements of these requirements in their fundraising materials to be ready on day one.
At StartEngine, we’ve fielded inquiries from crypto entrepreneurs looking to crowdfund utility tokens alongside equity. The most common question: “Can we rely on the CLARITY Act to avoid being labeled a security?” Our answer: “Not yet.” 

Until the law passes and the SEC codifies a safe harbor, tokens marketed as investments will still be scrutinized as securities. Even after passage, entrepreneurs must comply with disclosure, anti‑fraud and investor protection requirements. 

Don’t forget: the House bill mandates segregation of customer assets and prohibits commingling.¹ Those aren’t suggestions; they’re requirements. As always, honesty and transparency aren’t optional; they’re the cost of admission.

This doesn’t mean you should hold back. Smart entrepreneurs are exploring dual‑track capital structures: offering token rights under Regulation D or Regulation Crowdfunding while preparing to convert those tokens into digital commodities once the CLARITY Act passes. Others are tokenizing equity using the GENIUS Act’s stablecoin clarity and building compliance workflows that match Project Crypto’s anticipated rules. 

The key is to plan for multiple outcomes and stay nimble.

Looking forward: don’t mistake potential for reality

As a CEO who’s spent years fighting for regulatory clarity, I’m energized by the momentum:

• The PWG report supports self‑custody and open networks.²
• The Treasury Secretary is essentially telling you to build in America.⁴
• The SEC’s new chair admits most crypto tokens aren’t securities and promises safe harbors.⁷

But let’s not confuse pronouncements with policy. 

The Senate has not yet passed the CLARITY Act. The SEC has not yet published its Project Crypto rules. Tax bills have not yet been drafted. 

Entrepreneurs shouldn’t rely on political promises; they should prepare for both a clear framework and another year of regulatory purgatory.

Here’s what I’d do if I were launching a blockchain protocol today:

1. Stay engaged with policymakers. Comment on proposed rules, meet with your congressional delegation and offer real‑world examples. The CLARITY Act’s three‑year safe harbor came from industry feedback; your voice matters.
2. Implement compliance systems now. Segregate customer assets, establish robust custody solutions and adopt anti‑fraud practices, even if not yet required. When the law arrives, you’ll be ahead of the curve.
3. Consider multi‑jurisdictional fundraising. The CLARITY Act will not remove all friction; some states may adopt their own rules. Look at Singapore, the UK or the EU’s MiCA as alternatives or complements.
4. Use stablecoins and compliant crowdfunding now. The GENIUS Act is law; U.S. stablecoins like USDC now have clear regulatory backing.³ You can leverage those to accept payments and distribute dividends while waiting for the broader framework.
5. Keep your eyes on the horizon. Even if the Senate drags its feet, Project Crypto could yield administrative relief sooner.⁸ Watch for SEC proposals this fall.

In the weeks to come, we’ll continue to monitor the Senate’s actions, the SEC’s rulemakings and the entrepreneurial strategies evolving around them. If you’re hoping to use the CLARITY Act to raise capital, stay patient but proactive. 

The U.S. is inching toward a coherent crypto regime. With or without Congress, the winds are shifting. That’s exciting, and long overdue.

Best regards,  

Howard Marks  
CEO, StartEngine  

Important Disclosures

This article may contain forward‑looking statements and projections. These are not guarantees; actual outcomes may differ materially.

Investing in private, pre‑IPO companies is highly speculative and illiquid. Such investments are intended only for accredited investors who can bear the risk of total loss. Past performance does not guarantee future results. Consult a financial advisor before investing.

Securities offered through StartEngine Primary, LLC, member FINRA/SIPC. This is a general investment recommendation for accredited investors under Regulation Best Interest; it is not personalized investment advice. Review our Form CRS and Reg BI disclosure to understand our services and conflicts.

Sources

[1] The CLARITY Act: Key Developments for Digital Assets | Loeb & Loeb LLP - JDSupra
https://www.jdsupra.com/legalnews/the-clarity-act-key-developments-for-8822172/

[2] New White House Report Outlines U.S. Policy for Digital Assets | Insights | Jones Day
https://www.jonesday.com/en/insights/2025/08/new-white-house-report-outlines-us-policy-for-digital-assets

[3] [4] Treasury Secretary Bessent Remarks at the Launch of the White House Digital Assets Report | U.S. Department of the Treasury
https://home.treasury.gov/news/press-releases/sb0216

[5] [6] Senate Banking Committee Releases Draft Digital Asset Market Structure Bill and Request for Information | Consumer Financial Services Law Monitor
https://www.consumerfinancialserviceslawmonitor.com/2025/08/senate-banking-committee-releases-draft-digital-asset-market-structure-bill-and-request-for-information/

[7] [8] SEC Chairman Atkins Announces “Project Crypto” – A New Era for Digital Asset Regulation in the United States - A&O Shearman
https://www.aoshearman.com/en/insights/ao-shearman-on-fintech-and-digital-assets/sec-chairman-atkins-announces-project-crypto

[9] SEC's "Project Crypto:" A Step Toward On-Chain Financial Markets | Consumer Financial Services Law Monitor
https://www.consumerfinancialserviceslawmonitor.com/2025/08/secs-project-crypto-a-step-toward-on-chain-financial-markets/

[10] SEC and CFTC Launch Crypto Initiatives to Revamp Regulations and Promote Innovation | Global Fintech & Digital Assets Blog
https://www.fintechanddigitalassets.com/2025/08/sec-and-cftc-launch-crypto-initiatives-to-revamp-regulations-and-promote-innovation/

[11] New US Proposals to Change How Digital Assets, Virtual Currencies, and Cryptocurrencies Are Taxed Could Significantly Impact the Industry | HUB | K&L Gates
https://www.klgates.com/New-US-Proposals-to-Change-How-Digital-Assets-Virtual-Currencies-and-Cryptocurrencies-Are-Taxed-Could-Significantly-Impact-the-Industry-8-12-2025