A potentially crucial phase in the SEC’s plan to develop a more crypto-friendly regulatory framework has been delayed. On the 14th of August, the agency was due to vote on SEC Chairman Paul Atkins’ proposed “Regulation Crypto” agenda.
SEC members would have considered exemptions for crypto startups seeking to raise capital outside conventional securities-offering rules.
But now the SEC spokesperson explained why the crypto meeting was called off and said,
The SEC is committed to delivering on the President’s agenda to bring certainty to the crypto space. Due to an unforeseen scheduling issue, tomorrow’s Open Meeting will be moved to a later date.
Why was this SEC crypto meeting important?
Under traditional securities rules, companies faced registration, disclosure, and compliance requirements when selling assets that qualified as securities.
However, if this SEC crypto meeting had happened, it could have made it easier and less expensive for crypto companies to launch projects and raise money in the U.S.
Startups may be granted a restricted regulatory path through a customized crypto exemption. This would have enabled them to raise a specific amount of money or operate for a predetermined amount of time without having to fulfill all conventional requirements.
But now, since the meeting has been postponed to infinity, it remains to be seen what happens next.
Is the CLARITY Act acting as a barricade?
This occurs as the Senate has gone into a five-week recess without taking a vote on the CLARITY Act. Needless to say, the crypto industry may have to wait longer to get the regulatory certainty it has been pursuing because both SEC rulemaking and congressional legislation are proceeding more slowly.
Nonetheless, the cancellation does not imply that the SEC has given up on its crypto reforms. The proposal may just be postponed rather than canceled because the agency has explained the delay as a “scheduling issue”.
Indirectly, this implies that the SEC may be waiting for the CLARITY Act to be approved before acting, but the 21% approval odds indicate that this is unlikely to happen soon.
Final Summary
- The SEC crypto meeting, which was scheduled for 14th August, has been postponed due to scheduling issues.
- The CLARITY Act has also been postponed with the Senate going into a five-week recess.
