The US Securities and Exchange Commission abruptly cancelled the public meeting scheduled for last Friday, where it was expected to advance its cryptocurrency regulation proposal, known as Reg Crypto, and reveal its innovation exemption, repeatedly postponed. The pause apparently stemmed from the Digital Asset Market Clarity Act.
The SEC had announced earlier last week that it would hold an open meeting where its commissioners would discuss the Reg Crypto proposal, which would establish how companies could raise funds by issuing tokens and eventually exit SEC jurisdiction if they issue their own digital assets. The agency also planned to reveal at least part of its innovation exemption, which would address in some way how security token issuers can handle underlying securities, according to industry sources who spoke to CoinDesk.
People familiar with the situation told CoinDesk that concerns about the Clarity Act led to the SEC's postponement. The White House and lawmakers are specifically worried that any SEC action could further complicate ongoing negotiations about that law ahead of the Senate's first vote on the legislation next month.
The formal rule-making process requires time; the SEC will request and incorporate public comments on its proposals, publish revised proposed rules and ultimately finalise these rules. An industry source told CoinDesk that the rule-making phase alone could take roughly a year, followed by another year for implementation. This would bring the industry very close to the next presidential administration, which could make it easier to undo any framework or final regulation.