The U.S. Securities and Exchange Commission (SEC) has canceled a meeting where it was expected to discuss new rules for crypto projects raising capital through token sales. The agency did not announce a new date for the meeting originally scheduled for August 14.
SEC commissioners were expected to vote on a regulatory proposal called “Reg Crypto.” The proposal aimed to create a separate offering framework for investment contracts involving crypto assets, distinct from existing securities issuance rules.
The decision does not mean that the SEC has withdrawn the proposal entirely. The agency only canceled the meeting and said it would reschedule it at a later date.
SEC canceled the meeting at the last minute
The SEC removed the meeting from its calendar late on Thursday, August 13. An agency spokesperson attributed the decision to an unforeseen scheduling issue.
The agency provided no information about when the meeting would take place. It therefore remains unclear when the proposal will return to the agenda or when commissioners will hold the vote.
At the open meeting, commissioners were expected to vote on whether to release the Reg Crypto proposal for public comment. Even if approved, the rules would not have taken effect immediately and would have required further evaluation following a formal public consultation process.
Reg Crypto could make it easier for projects to raise funds
The Reg Crypto proposal seeks to establish special offering conditions for projects conducting token sales. Under the current framework, tokens classified as securities may be subject to the registration and disclosure requirements applied to traditional securities offerings.
The new regime could allow projects that meet certain conditions to raise capital under more limited requirements. SEC Chair Paul Atkins has previously discussed exemptions that could let crypto startups raise funds up to a specified amount or operate for a limited period.
The final scope of the proposal remains unclear. The SEC is expected to determine requirements covering investor protection, project disclosures, fundraising limits and the duration of any exemptions after reviewing public comments.
CLARITY Act delay extended regulatory uncertainty
The SEC’s decision came as crypto legislation in Congress also lost momentum. The U.S. Senate entered a five-week recess without voting on the Digital Asset Market Clarity Act.
The CLARITY Act aims to define the respective jurisdictions of the SEC and the Commodity Futures Trading Commission within the crypto market. The bill could also provide a clearer framework for determining which crypto assets qualify as securities and which should be treated as commodities.
The postponement of the SEC’s regulatory initiative following the delay in Congress means uncertainty will continue for crypto companies. Until new rules are finalized, projects remain exposed to the risk of being assessed under existing securities laws.
Tokenized securities plan was also affected
The SEC was also expected to share information at the meeting about an “innovation exemption” for tokenized securities. The initiative seeks to make it easier for companies to issue and trade stocks and other securities through blockchain infrastructure.
The innovation exemption is separate from the Reg Crypto proposal. Reg Crypto focuses on projects raising capital through token sales, while the innovation exemption covers blockchain-based trading of traditional securities.
Industry sources say the SEC may also delay the innovation exemption following objections from the White House and traditional financial institutions. Discussions have focused on the agency’s legal authority to grant broad exemptions and how blockchain-based platforms would comply with existing market rules.
SEC has not withdrawn the proposal
The cancellation does not indicate that the SEC has abandoned the Reg Crypto proposal or its broader crypto policy. Under Paul Atkins, the agency continues to pursue plans to reshape existing rules for crypto companies.
However, the SEC has yet to announce a new meeting date or an updated timeline for the proposal. The agency could schedule another open meeting and return the Reg Crypto proposal to its voting agenda at a later date.
