SEC Cancels Crypto Fundraising Meeting, Delaying New Path for Issuers

The US Securities and Exchange Commission (SEC) has canceled an open meeting that was scheduled for August 13, delaying the first public look at a possible crypto fundraising regime. The agenda included considering a proposal for a tailored offering regime covering certain investment contracts involving crypto assets.

This development leaves token issuers with no new path to fund development, and the existing registration and exemption framework remains unchanged. However, the SEC's March interpretation still applies, separating a crypto asset from the transaction in which it is sold. A crypto asset that is not itself a security can still be offered as part of an investment contract when buyers invest in a common enterprise with a reasonable expectation of profits from an issuer's essential managerial efforts.

Once an issuer completes the essential work promised, or buyers can no longer reasonably expect those efforts, the token can separate from the associated investment contract. The interpretation encourages clear public disclosure of issuer promises and milestones that matter to the investment-contract analysis.