- The SEC will hold an open meeting this week to discuss new rules tailored for certain investment contracts involving crypto assets.
- It follows the failure of the CLARITY Act to proceed to a vote before the Senate’s August recess.
The Digital Asset Market CLARITY Act hangs in limbo as it failed to reach a final floor vote–not even a cloture–before the US Congress headed to a recess. The public’s patience has also run thin amid the bill’s slow progress since the House passed the ball to the Senate.
The very low morale around the bill is evident in key prediction markets. On Tuesday, only 21% of Polymarket users believe it will reach President Donald Trump’s signature this year.
This was a significant increase from an all-time low of 13% a few days ago, but still very low odds nonetheless. Meanwhile, 26% of Kalshi participants share the same view.
SEC Acts on Promise of Advancing Crypto Regulation
Despite the frustrating developments around what could have been a landmark law for crypto and other digital assets, the US Securities and Exchange Commission (SEC) has acted on its promise of advancing crypto regulation regardless of the CLARITY Act’s fate in Congress.
On Monday, the SEC posted a notice on its official website. It informed the public of an open meeting on August 14 at 10:00 AM ET.
The meeting will focus on determining whether the regulator should consider the issuance of “a release proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets.”
The agency’s Division of Corporation Finance will facilitate the meeting. It will be open to the public, and seating will be on a first-come, first-served basis. The event will also stream via a webcast on the SEC’s website to allow broader public participation.
The Open Meeting’s Purpose
The announcement didn’t provide specific details about the issues that will be discussed in the meeting. However, based on SEC Chair Paul Atkins’ previous speeches and interviews as well as the agency’s past issuances, it will likely focus on establishing clearer rules in the sale and offering of various crypto assets.
In addition, the talks will potentially zero in on providing exemptions and safe harbors for certain market participants. It follows the SEC’s important guidance early this year, which drew a clear boundary between its reach and the Commodity Futures Trading Commission’s (CFTC) jurisdiction over the regulation of varying crypto market activities.
The move marked an enhanced cooperation between the SEC and CFTC in crypto oversight. It’s worth noting that the two have occasionally run in conflict during former SEC Chair Gary Gensler’s term due to the disconnect in their views about the classification of different crypto assets and overlapping claims about their regulation.
