SEC cancels Reg Crypto rulemaking meeting, delaying innovation exemption rules amid stablecoin yield disputes over the CLARITY Act.
Regulation & Gov ·
The SEC postponed a scheduled open meeting intended to advance its Reg Crypto proposal and unveil delayed innovation exemption guidance for security token issuers. The delay appears linked to ongoing legislative negotiations around the Digital Asset Market Clarity Act, with White House and Senate officials concerned that regulatory action could complicate the bill's path ahead of a September vote. Stablecoin yield provisions have emerged as a point of contention in those discussions.
The Reg Crypto framework would establish pathways for companies to conduct token fundraising and eventually exit SEC oversight under certain conditions. Industry observers had anticipated that if legislative momentum stalled, the regulator might fill the gap with finalized rules. However, the postponement suggests regulatory movement may remain frozen until after the Senate's early-October recess.
The timing presents substantial practical constraints. One industry participant indicated the rulemaking phase alone could require nearly a year, followed by a separate implementation period of similar length, pushing finalization close to the next presidential transition. That proximity creates risk that a subsequent administration could reverse any completed frameworks, limiting the durability of any rules now under development.