WASHINGTON D.C., March 18, 2026 – The cryptocurrency industry faces renewed calls for regulatory clarity as advocacy group Coin Center presses the U.S. Securities and Exchange Commission to abandon its case-by-case approach. Consequently, the non-profit think tank argues the SEC must prioritize comprehensive rulemaking over issuing no-action letters. This push comes amid ongoing fragmentation in how digital assets receive regulatory treatment.
SEC Rulemaking Versus Reactive No-Action Letters
Coin Center, a prominent crypto policy organization, publicly released a letter to the SEC dated March 5, 2026. The document outlines a fundamental critique of the regulator’s current methodology. Specifically, the letter states that “individualized relief can provide short-term clarity, but it risks fragmentation, implicit merit regulation, and uneven treatment across projects.” Therefore, the group urges the SEC to “prioritize rulemaking wherever possible” to establish a stable legal framework.
This argument centers on the nature of crypto networks as public infrastructure. According to the letter, “The true value of crypto networks lies in their character as utility-like public goods rather than as services operated by private corporations or associations.” A rule-based system, rather than discretionary letters, would better serve this public-good characteristic.
The Problem with Selective Regulatory Relief
Coin Center’s position highlights a core tension in U.S. financial regulation. No-action letters provide specific entities with assurance that the SEC staff will not recommend enforcement action for a particular activity. However, these letters do not create formal legal precedent. The think tank contends this process inherently favors well-resourced companies.
“If relief is granted selectively, the regulator inevitably puts its thumb on the scale in favor of networks or intermediaries that have the resources and incentives to pursue it,” the letter explains. This creates an uneven playing field where smaller projects operate under greater uncertainty. Meanwhile, larger entities can navigate the costly process of seeking individual letters.
Recent Examples of Crypto No-Action Letters
The past several months demonstrate the selective application Coin Center criticizes. For instance, regulatory activity includes:
- Phantom Wallet: The Commodity Futures Trading Commission’s Market Participants Division issued a no-action letter to Phantom Technologies. This letter stated the division would not recommend enforcement for failing to register as a broker under specific circumstances.
- DePIN Projects: The SEC issued two no-action letters to decentralized physical infrastructure network projects, providing them specific operational clarity.
- Crypto Custody: In late September 2025, the SEC issued a letter allowing investment advisers to use state trust companies as crypto custodians.
While providing clarity to recipients, these actions do not establish industry-wide rules. Consequently, other wallet providers, DePIN projects, or custodians cannot automatically assume the same treatment applies to them.
Broader Regulatory Context and Coordination
The call for SEC rulemaking occurs within a shifting regulatory landscape. Following the Coin Center letter, the SEC released an interpretive notice. This notice detailed how “non-security crypto assets” fit within federal securities laws. Furthermore, it proposed a taxonomy for digital commodities, collectibles, tools, stablecoins, and securities.
Additionally, on March 12, 2026, the SEC and the CFTC signed a memorandum of understanding. This agreement aims to better coordinate oversight of financial markets. Many observers hope it ends longstanding jurisdictional disputes between the agencies. Improved coordination could facilitate more coherent rulemaking, as Coin Center advocates.
Legislative Efforts for Clarity
Parallel to regulatory actions, U.S. lawmakers pursue legislative solutions. The CLARITY Act continues to move through Congress. This bill seeks to provide clearer regulatory oversight for the crypto industry. If passed, it would give the SEC and CFTC explicit guidance on jurisdictional boundaries for digital assets. Legislative clarity could reduce ambiguity and ensure more consistent treatment, addressing the very fragmentation Coin Center identifies.
The Impact of Regulatory Uncertainty on Markets
Prolonged uncertainty carries significant consequences for the digital asset ecosystem. Market participants face difficulty planning long-term investments and innovations without clear rules. This uncertainty can stifle development and push activity to jurisdictions with more defined regulatory regimes. Moreover, investors may face heightened risks when the legal status of assets remains ambiguous.
A shift toward formal rulemaking would involve public notice, comment periods, and published final rules. This transparent process allows all market participants to understand the requirements. It also provides a stable foundation for legal compliance and business model development.
Conclusion
Coin Center’s public appeal underscores a critical juncture for cryptocurrency regulation in the United States. The debate between flexible, case-by-case no-action letters and comprehensive SEC rulemaking touches on fairness, innovation, and market stability. As regulatory agencies improve coordination and Congress considers legislation, the pressure for clear, universally applicable rules intensifies. The outcome will significantly shape whether crypto networks develop as the utility-like public goods Coin Center describes or remain subject to fragmented, selective regulatory treatment.
FAQs
Q1: What is a no-action letter from the SEC?
An SEC no-action letter is a response from the agency’s staff stating they will not recommend enforcement action to the Commission regarding a specific set of facts presented by a requester. It is not a formal rule or binding legal precedent.
Q2: Why does Coin Center oppose no-action letters for crypto?
Coin Center argues that issuing no-action letters on a case-by-case basis creates a fragmented regulatory environment. It believes this approach leads to uneven treatment, favors entities with resources to seek letters, and fails to provide clear, industry-wide rules for the crypto market.
Q3: What is the CLARITY Act?
The CLARITY Act is proposed legislation in the U.S. Congress aimed at providing clearer regulatory oversight for the cryptocurrency industry. It seeks to delineate which digital assets fall under the jurisdiction of the SEC versus the CFTC to reduce regulatory ambiguity.
Q4: What recent steps have the SEC and CFTC taken regarding crypto?
In March 2026, the SEC released an interpretive notice on non-security crypto assets and the SEC and CFTC signed a memorandum of understanding to improve coordination and end jurisdictional “turf wars” in overseeing digital asset markets.
Q5: How does regulatory uncertainty affect the cryptocurrency industry?
Regulatory uncertainty can stifle innovation and investment, as businesses struggle to plan without clear legal guidelines. It may also create competitive disadvantages for smaller projects and increase risk for investors, potentially driving development to other countries with clearer rules.
Updated insights and analysis added for better clarity.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
