SEC Delays Vote on Exemptions for Crypto Fundraising

In SEC crypto news today, the Securities and Exchange Commission canceled its August 14 open meeting, which had been scheduled to consider whether to propose new crypto-related rules.

An SEC spokesperson said the meeting would be moved due to an unforeseen scheduling issue, and no replacement date was announced.

Commissioners had been scheduled to vote on proposed exemptions that would allow crypto startups to raise capital without complying with traditional securities offering rules. Reuters reported that the SEC said the session would be moved because of an unforeseen scheduling issue, without providing a new date.

Under SEC Chair Paul Atkins, the agency has reversed parts of its previous crypto policy, including rescinding stringent crypto accounting guidance and dismissing lawsuits against Coinbase, Binance and other companies that had alleged the companies were flouting SEC rules. Reuters reported that Atkins has backed the view held by crypto companies that most tokens more closely resemble commodities than securities.

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The SEC delay follows the Senate’s departure for a five-week recess without a vote on the CLARITY Act, the industry’s top legislative priority. Reuters reported that the missed vote suggested the bill’s chances of passage had dimmed. If passed, the bill would create new federal rules tailored to cryptocurrencies and put companies on firmer legal footing, according to lobbyists cited by Reuters.

The SEC meeting and the CLARITY Act involve separate approaches to crypto policy. The canceled SEC session concerned proposed exemptions for crypto fundraising, while the legislation would, if enacted, create new federal rules tailored to cryptocurrencies.

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In March, Atkins suggested that the SEC would propose a safe harbor intended to make it easier for companies to sell tokens and raise money. He also said the agency was considering a fit-for-purpose startup exemption that would allow crypto entrepreneurs to raise a certain amount of money or operate for a finite period while exempt from SEC rules.

The SEC is also working on an innovation exemption that Atkins has said would allow companies to experiment with new digital-asset business models, including blockchain-based stocks, without complying with all SEC disclosure and investor safeguards.

The canceled meeting had been scheduled to consider whether to propose the crypto fundraising exemptions. Its cancellation postponed that consideration, and the SEC did not announce a replacement date.

No replacement date has been announced for the SEC meeting. The Senate is in a five-week recess after leaving Washington without voting on the CLARITY Act. The SEC proposal has not been considered at the canceled meeting, and the Senate has not voted on the legislation.

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