SEC Delays Crypto Regulation Amid Clarity Act Uncertainty
The US Securities and Exchange Commission (SEC) has put on hold key crypto regulatory initiatives as lawmakers continue to discuss the Digital Asset Market Clarity Act. This uncertainty raises fresh doubts over the timeline for US digital asset regulation.
Originally, the SEC was set to discuss its proposed 'Reg Crypto' framework, which aims to establish clearer rules for companies raising capital through token offerings. The proposal also includes a potential pathway for projects issuing their own digital assets to eventually move outside SEC oversight.
The regulator had planned to reveal part of its long-delayed innovation exemption, which could provide guidance for tokenized securities and clarify how issuers should handle traditional securities underlying blockchain-based products. However, neither initiative moved forward.
According to individuals familiar with the situation, the SEC delays are linked to concerns surrounding the Clarity Act. The White House and lawmakers reportedly fear that new SEC crypto rules could complicate negotiations before the Senate's expected first vote on the legislation in September.