Summary
- The SEC has scrapped a meeting scheduled for Friday, where commissioners were meant to vote on a proposed framework for crypto asset offerings.
- A representative mentioned an "unforeseen scheduling issue," but no new date has been provided.
- This would have marked the agency's initial foray into crypto-specific regulations, coinciding with the Senate's recess without progress on the Clarity Act.
The Securities and Exchange Commission (SEC) has canceled an open meeting set for Friday morning, during which its three commissioners were slated to vote on the introduction of the agency's first rules specifically for cryptocurrency, as reported by Reuters.
A formal announcement issued under the Sunshine Act by SEC secretary Vanessa Countryman simply stated that the meeting "has been cancelled," without mentioning a rescheduling. A spokesperson later told reporters that the meeting would be postponed due to an "unforeseen scheduling issue," though additional details were not provided.
The SEC had previously announced the meeting on August 10, offering about three business days' notice. The agenda included a single item on the proposal.
The commissioners were expected to vote on whether to solicit public comments on a set of exemptions that would allow crypto startups to raise funds without adhering to standard securities offering regulations—an alternative to registration that many founders have sought for years. While the vote itself would not have created binding rules, it would have marked the SEC's first attempt to establish crypto-specific regulations instead of applying existing securities laws.
This meeting had been announced just four days prior, a shorter notice than the usual week, and was interpreted as the SEC's effort to address the regulatory gaps left by the Senate, which adjourned on Saturday for a five-week break without advancing the Clarity Act.
Both Initiatives Stalled
The next procedural hurdle for the Clarity Act is not anticipated until September, and its chances of passing this year appear slim. Traders on Myriad, a prediction market owned by Decrypt’s parent company Dastan, estimate a 20% likelihood that it will be signed into law by 2026.
SEC Chairman Paul Atkins provided broad guidance for the crypto sector in March, proposing that a safe harbor could be available for startups with up to $5 million in revenue experimenting with cryptocurrency in their first four years, as well as for entrepreneurs raising up to $75 million through investment contracts, and tokens whose creators have ceased all significant management activities. An additional innovation exemption is in development and would allow companies to explore blockchain-based stocks and similar offerings without fulfilling all SEC disclosure requirements.
Meanwhile, the Commodity Futures Trading Commission (CFTC) is moving forward with its own event, hosting an inaugural meeting of its Innovation Advisory Committee on August 20. The agenda includes a session titled "Crypto's Regulatory Evolution: From Uncertainty to Clarity," along with discussions on artificial intelligence and prediction markets. This meeting will be advisory and will produce recommendations rather than enforceable regulations.