The U.S. Securities and Exchange Commission (SEC) has unveiled a new proposed regulatory plan to apply to investment contracts related to cryptocurrencies.

On Aug. 19, Cointelegraph reported that SEC Commissioner Hester Peirce said the proposal was an important step toward clearer, enforceable digital asset regulation and away from existing unsuitable crypto rules.

The proposal focuses on creating a clear, fit-for-purpose framework for investment contracts that include certain crypto assets. It aims to allow fundraising while maintaining investor protection.

In a statement, Peirce said the market had struggled for a long time under the SEC's existing approach. "An entire generation has wrestled with the SEC's obstinacy," she said. "The SEC has applied unsuitable rules to crypto." She said the new guidelines were an important step toward establishing reasonable and effective rules for crypto products.

SEC Chair Paul Atkins also publicly backed the bill. "The SEC's past enforcement-focused approach drove U.S. investors overseas," he said. The remarks are read as highlighting the need to put rules in place in advance rather than rely on enforcement.

The proposal comes days after the U.S. Senate failed to advance the Clarity bill, a digital asset market clarity measure. The bill includes a broad framework across financial regulators overseeing the crypto industry. With comprehensive legislation blocked at the congressional level, the SEC is moving to craft its own rules.

In a CNBC interview on July 27, Atkins also said that if the Senate fails to pass the Clarity bill, the SEC could independently establish digital asset rules. "The SEC has all the preparation, will and capability needed for rulemaking," he said at the time.

The market is also watching weakening legislative momentum. Galaxy Digital put the likelihood of the Clarity bill passing in 2026 at 10 percent. It cited several political disputes still unresolved and said that even if the Senate returns to session on Sept. 14, the available time for processing could be about 2 to 3 weeks.

As a result, future focus narrows to two tracks. The key questions are whether the SEC can turn the proposal into actual rules and whether comprehensive legislation at the congressional level can regain momentum. At a minimum, the proposal makes clear that the center of gravity in U.S. crypto regulation talks is shifting from enforcement to rule-setting.