US securities regulator cancels meeting to vote on crypto rules

On August 13th, the U.S. Securities and Exchange Commission unexpectedly called off a meeting planned for the following day regarding potential new cryptocurrency regulations. According to an SEC spokesperson, the meeting was postponed due to an unforeseen scheduling conflict. The agency was originally set to vote on proposing exemptions that would enable crypto startups to raise capital without adhering to standard securities offering regulations.

This delay follows the Senate's departure for a five-week recess on Saturday without deliberating on the Clarity Act, an industry's top legislative priority. If passed, the bill would establish federal rules specifically designed for cryptocurrencies, providing companies with a more secure legal foundation, according to lobbyists.

Under the previous administration, led by Trump's SEC Chair Paul Atkins, the agency had taken a more lenient approach to crypto, advocating for comprehensive reforms to adapt capital markets regulations for tokens and blockchain-based trading. Prior to his tenure, a Democratic SEC leader had sued various crypto firms, arguing that their tokens functioned as securities and that the companies should have followed SEC registration and disclosure protocols.

Crypto companies maintain that most tokens are more akin to commodities, a stance that Atkins has also endorsed. In March, he indicated that the SEC would propose rules creating a safe harbor, facilitating easier token sales and capital raising for companies. He also mentioned considering a flexible exemption for startups, allowing them to raise a specific amount of funds or operate for a limited time without SEC oversight.

Trump, who frequently advocated for crypto throughout his campaign and whose family stands to benefit from a token, has made crypto regulation a priority during his second term. Under his leadership, the SEC promptly withdrew stringent crypto accounting guidelines and dismissed lawsuits against Coinbase, Binance, and other entities accused of violating the agency's rules.

The SEC is also developing an innovation exemption, which Atkins has stated would permit companies to experiment with novel digital asset business models, such as blockchain-based stocks, without being bound by all SEC disclosure and investor protections.