Summary
- The SEC unexpectedly canceled a Friday meeting intended to initiate formal rulemaking for Regulation Crypto Assets, a framework for crypto fundraising, just three days after its announcement.
- Sources indicate that the Securities Industry and Financial Markets Association (SIFMA) raised the possibility of legal action regarding the SEC's authority, leading to the agency's decision to postpone.
- The discussion on crypto policy continues this week with a White House event featuring President Trump and crypto executives, along with the CFTC’s Innovation Advisory Committee meeting and ongoing negotiations related to the Clarity Act ahead of a September 15 vote.
In a surprising turn of events, the Securities and Exchange Commission (SEC) canceled a planned meeting that was set to commence the formal rulemaking process for a new regulatory framework for crypto fundraising, known as Regulation Crypto Assets. This decision came just three days after the meeting was announced and was seen as an effort by the SEC to establish clearer regulations while the Clarity Act remains stalled until Congress reconvenes in mid-September.
An SEC representative cited an “unforeseen scheduling issue” as the reason for the cancellation but did not provide further details.
However, insights from sources in the crypto policy sphere suggest that the Securities Industry and Financial Markets Association (SIFMA) played a significant role in this development. SIFMA, representing leading Wall Street broker-dealers and investment firms, has consistently opposed broad regulatory exemptions for crypto and tokenized securities. In a letter from June 2025, the group urged the SEC against making substantial changes to existing rules through exemptions, calling instead for a public feedback process to avoid regulatory loopholes that could undermine investor protections and market stability.
The SEC's Crypto Task Force has been exploring the possibility of an innovation exemption that would allow crypto firms more leeway in trading tokenized securities without adhering to all the traditional regulations that apply to Wall Street firms. Reports indicated that the SEC was on the verge of announcing details regarding this exemption last Friday, potentially alongside the proposed fundraising framework. Unlike the latter, the innovation exemption would utilize the SEC’s existing exemptive powers instead of going through formal rulemaking.
According to multiple industry insiders, the White House requested the SEC to delay the meeting due to concerns that both Regulation Crypto Assets and the innovation exemption might complicate ongoing negotiations related to the Clarity Act, which addresses crypto fundraising and tokenized securities.
Additionally, it has been reported that SIFMA discussed the potential for legal action should it determine that the SEC overstepped its authority under federal securities laws, including through exemptions or no-action relief. This possibility may have influenced the White House's decision to have the SEC cancel the meeting, as per the sources' accounts.
SIFMA’s spokesperson refrained from commenting on the discussions regarding a legal challenge, stating, "SIFMA does not comment on specious or hypothetical theories. In this situation in particular, it would be premature to comment on something that currently doesn’t exist.”
The SEC and the White House have not responded to inquiries regarding this situation.
It is still uncertain whether the SEC will reschedule the meeting before the Senate's return next month. Meanwhile, the dialogue around crypto policy is expected to continue with events scheduled for Wednesday and Thursday this week.
SEC Chairman Paul Atkins and CFTC Chairman Michael Selig will participate in a White House event on Wednesday alongside various crypto and finance executives, where President Trump is anticipated to speak. Notable attendees include Coinbase CEO Brian Armstrong, Ripple CEO Brad Garlinghouse, and Gemini founders Tyler and Cameron Winklevoss, among others.
On Thursday, Selig will preside over the first meeting of the CFTC’s Innovation Advisory Committee, which includes several executives from the previous day's event. The committee will discuss topics including crypto regulation, the impact of artificial intelligence, and prediction markets.
Simultaneously, lawmakers are expected to continue working on unresolved issues related to the Clarity Act before a cloture vote scheduled for September 15. Key topics include DeFi and developer protections, as well as ethics rules for government officials.
Negotiators will also face ongoing pressure from the banking sector regarding changes to the bill's stablecoin yield provisions. Despite this, leading bank CEOs, such as Goldman Sachs’ David Solomon and Citi’s Jane Fraser, support the passage of the broader legislation. Fraser remarked, “We have not given up on pushing to get some improvements made to the bill, but we would like to see a good bill go through. I think it would be excellent for the system.”
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