US securities regulator cancels meeting to vote on crypto rules

On Thursday, the U.S. Securities and Exchange Commission unexpectedly canceled a scheduled meeting for Friday, which was intended to discuss whether the agency should propose new rules related to cryptocurrencies. According to a spokesperson for the SEC, the meeting's relocation was due to an unforeseen scheduling problem. The agency had planned to vote on proposing exemptions that would enable crypto startups to raise capital without adhering to standard securities offering regulations.

This delay stems from the Senate's decision to recess for five weeks without voting on the Clarity Act, an industry's top legislative priority. The bill, if passed, would establish federal rules specific to cryptocurrencies and provide a more stable legal foundation for companies, according to lobbyists. During the era of Trump's SEC Chair Paul Atkins, the agency reversed its crypto policy, aiming to overhaul capital markets regulations to accommodate tokens and blockchain-based trading.

When the Democratic leader of the SEC during that time had sued several crypto companies, contending that their tokens functioned as securities and they ought to have adhered to SEC registration and disclosure rules, crypto companies maintained that most tokens more closely resembled commodities than securities, an opinion supported by Atkins.

In March, he indicated that the SEC would propose rules establishing a safe harbor, making it simpler for businesses to sell tokens and raise funds. He also mentioned the SEC was contemplating a fit-for-purpose startup exemption, which would permit crypto entrepreneurs to raise a certain amount of funds or operate for a limited period while being exempt from SEC regulations.

Trump, who campaigned on the topic of crypto and whose family benefited from its token, has emphasized crypto reform during his second administration. During his tenure, the SEC swiftly rescinded stringent crypto accounting guidance and dismissed lawsuits against Coinbase, Binance, and others that alleged those companies disregarded the agency's rules.

The SEC is also developing an innovation exemption that Atkins has stated would empower companies to experiment with novel digital asset business models, such as blockchain-based stocks, without having to comply with all SEC disclosure and investor safeguards.