The United States Securities and Exchange Commission (SEC) cancelled the public meeting scheduled for Friday morning. Reuters reported that the three members had planned to vote at the meeting on whether to initiate the first proposal for a special rule for encrypted assets by the body.
Original agenda focused encryption financing exemption
The official circular issued by the SEC states only that the meeting “has been cancelled” and does not give a new date. The speaker then stated to the media that it was due to “accidental scheduling problems”, which was not further explained.
As originally planned, the Commission would decide whether to make a package of exemptions for the distribution of encrypted assets publicly available for comment. The programme is aimed primarily at encrypted start-ups, which are allowed to finance without the full application of the rules governing the issuance of traditional securities.
Even if adopted, the vote would not immediately constitute a formal rule, but would go to the public comment stage. However, if advanced, it would be the first attempt by the SEC to establish separate rules for the encryption industry, rather than continuing to apply the existing securities law framework directly.
Progress slowed after the Senate recess
This meeting, which was announced on Monday, was held four days ago, less than the one-week advance notice usually given by the SEC. It is widely regarded as an attempt by the SEC to fill a gap in the legislature’s legislation.
Previously, the United States Senate had entered a five-week recess without advancing the Clarity Act. The report mentions that the next procedural node of the bill is expected to be in September, and that the chances of moving forward this year are low.
SEC and CFTC split progress
SEC Chairman Paul Atkins proposed a broader idea of encryption regulation in March of this year, including the provision of “safe havens” for some of the initial projects. As stated at the time, a pilot project with a value of up to $5 million within four years or an entrepreneur with an investment contract of up to $75 million could be included in the arrangement.
He also referred at the time to another “innovation exemption”, which was still under way, to allow enterprises to test products such as stock based on block chains without meeting all the requirements of the SEC disclosure.
In contrast, the United States Commodity Futures Trading Commission (CFTC) will continue to hold the first meeting of the Innovation Advisory Committee on 20 August, as planned. The agenda includes topics such as the evolution of encryption regulation, artificial intelligence and forecasting of markets, but the nature of the meeting is advisory, leading to recommendations and not to direct rule-making.