SEC cancels long-awaited proposal of Reg Crypto, postponing meeting without new date
The SEC has canceled a meeting to discuss its 'Reg Crypto' proposal, which was intended to provide a legal framework for crypto projects to issue securities. The delay leaves the industry in limbo as it waits for either the SEC or Congress to establish clear regulatory guidelines.
Why it matters
Regulatory uncertainty continues to hinder the development of a formal legal foundation for the U.S. crypto market, forcing firms to operate under ambiguous policy statements.
"Due to an unforeseen scheduling issue," the SEC is moving the meeting to "a later date," according to a statement from an agency spokesperson.
In the absence of progress in the Senate's Digital Asset Market Clarity Act, the legislation that would establish a legal foundation for crypto market activity in the U.S., the industry had looked to the SEC to pick up the baton. The so-called Reg Crypto is expected to open a limited framework for issuing crypto securities without triggering agency registration requirements, and also to be able to later transition out of management of the project and, as a result, out of the SEC's regulatory radar.
The sector will instead have to sit back again and see which branch of the government delivers first: SEC or Congress.
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