US securities regulator cancels meeting to vote on crypto rules

The U.S. Securities and Exchange Commission (SEC) unexpectedly canceled a crucial meeting scheduled for Friday, which was set to decide whether to propose new rules for the cryptocurrency industry.

An SEC spokesperson cited an "unforeseen scheduling issue" for the abrupt cancellation. The meeting was highly anticipated as it was expected to address potential exemptions that could allow crypto startups to raise capital without adhering to traditional securities offering regulations. This move comes at a time when the crypto industry is seeking regulatory clarity.

The delay in proposing new rules coincides with the Senate leaving Washington for a five-week recess without voting on the Clarity Act, a key legislative priority for the crypto industry. Lobbyists suggest that the bill's chances of passage have diminished, which could leave companies in a less stable legal position.

Under the Trump administration's SEC, there has been a shift in policy regarding cryptocurrencies. The agency has outlined plans to overhaul capital markets regulations to accommodate tokens and blockchain-based trading. This contrasts with the previous Democratic leadership, which pursued legal action against crypto companies, arguing their tokens were securities requiring SEC registration and disclosure. The current stance, supported by former SEC Chair Paul Atkins, suggests that most tokens are more akin to commodities. Atkins had previously indicated the SEC would propose rules creating a safe harbor for token sales and consider a "fit-for-purpose startup exemption" to ease fundraising for crypto entrepreneurs.

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due to an unforeseen scheduling issue.