PROPOSAL BY THE UNITED STATES SEC TO REMOVE ENCRYPTION REGULATIONS, POSTPONED MEETING

THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC) REMOVED THE MUCH-AWAITED PROPOSAL FOR ENCRYPTION REGULATION AND POSTPONED THE MEETING WITHOUT GIVING A NEW DATE. THE SEC WAS SCHEDULED TO ANNOUNCE ITS FIRST MAJOR RULE-MAKING EFFORT IN THE AREA OF DIGITAL ASSETS ON FRIDAY, BUT CANCELLED THE MEETING BECAUSE OF “UNFORESEEABLE SCHEDULING ISSUES”. THE INDUSTRY EXPECTS THE SEC TO TAKE OVER THE LEGISLATIVE RELAY, ESPECIALLY IN THE ABSENCE OF PROGRESS ON THE SENATE DIGITAL ASSET MARKET TRANSPARENCY BILL. THE PROPOSAL IS EXPECTED TO PROVIDE A LIMITED FRAMEWORK FOR THE ISSUANCE OF ENCRYPTED SECURITIES WITHOUT TRIGGERING THE INSTITUTIONAL REGISTRATION REQUIREMENT. THE INDUSTRY HOPES THAT THE SEC WILL BEGIN THIS MORE DURABLE FORM OF REGULATION AS SOON AS POSSIBLE, BUT FURTHER ACTION BY THE GOVERNMENT IS STILL AWAITED。