THE SEC CANCELLED THE ENCRYPTED VOTE AND THE CTC SET A NEW REGULATORY AGENDA

THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC) CANCELLED THE MEETING SCHEDULED FOR 14 AUGUST, AT WHICH IT SHOULD HAVE DECIDED WHETHER TO FORMALLY INTRODUCE A CUSTOMIZED REGULATORY PROGRAMME FOR ENCRYPTION PRODUCTS ON THE GROUNDS OF “UNFORESEEABLE CALENDAR ISSUES”. SIX DAYS LATER, THE COMMODITY FUTURES TRADING COMMISSION (CFTC) WILL CONVENE AN INNOVATIVE CONFERENCE ENTITLED “THE EVOLUTION OF ENCRYPTION REGULATION: FROM UNCERTAINTY TO CLARITY” TO DISCUSS DIGITAL ASSETS, AUTOMATED AI AGENTS AND FORECAST MARKETS. IT WAS NOT THE INTENTION OF THE SEC MEETING TO DEVELOP NEW ENCRYPTION LAWS, AT WHICH IT WAS INTENDED TO VOTE ON WHETHER TO ISSUE RULES ON PROPOSALS FOR CERTAIN INVESTMENT CONTRACTS AND TO BEGIN A FORMAL PUBLIC COMMENT PROCESS. SPECIFIC RULES HAVE NOT YET BEEN PUBLISHED. REUTERS REPORTED THAT THE INITIATIVE MIGHT CREATE AN EXEMPTION TO ALLOW ELIGIBLE ENCRYPTED START-UPS TO RAISE FUNDS WITHOUT IMMEDIATE COMPLIANCE WITH THE TRADITIONAL SECURITIES REGISTRATION FRAMEWORK. THE CONCEPT OF SAFE HARBOUR AND A MORE TARGETED INITIAL EXEMPTION FOR DIGITAL ASSETS ENTERPRISES HAVE BEEN DISCUSSED EARLIER BY THE CHAIRMAN OF THE SEC, PAUL ATKINS. THE CANCELLATION OF THE MEETING HAD THEREFORE DELAYED THE START OF RULE-MAKING AND NOT REJECTED THE POLICY。