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SEC cancels long-awaited proposal of Reg Crypto, postponing meeting without new date
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- DeepHorus
The U.S. Securities and Exchange Commission abruptly postponed the Friday meeting at which it was set to propose its first major crypto rule, known as “Regulation Crypto,” citing an “unforeseen scheduling issue” in a statement released Thursday evening. The agency said the meeting would be moved to a later date, but provided no new timeline. The cancellation came just hours before the proposal was expected to be unveiled, catching industry observers off guard.
The rule had been widely anticipated as a landmark step under SEC Chairman Paul Atkins, who had described Reg Crypto as “a tailored offering regime for certain investment contracts.” It was expected to create a limited framework for issuing crypto securities without triggering full agency registration requirements, while also allowing projects to later exit SEC oversight. The proposal was seen as a central pillar of Atkins' digital assets regulatory plan.
Until this more durable rulemaking process begins, including public notice and comment, the SEC has relied on a series of crypto policy statements to clarify its position. The postponement also delays another major effort: the “innovation exemption” for tokenizing securities, which insiders had expected to follow Reg Crypto. No reason beyond the scheduling issue was given for the sudden move.
The delay leaves the crypto industry in limbo, particularly as the Senate's Digital Asset Market Clarity Act remains stalled. That bill, which would establish a legal foundation for crypto market activity, has been a parallel hope for the sector. With the SEC stepping back, attention shifts to Congress, though the Senate is only briefly scheduled to return next month.
Crypto advocates had looked to the SEC to take the lead while legislative negotiations dragged on. The industry now faces an uncertain wait, unsure whether regulators or lawmakers will deliver a workable framework first. The Clarity Act still needs to clear the Senate's 60-vote threshold, but it remains unclear whether lawmakers and the White House can find enough common ground.
The SEC's postponement underscores the volatility of crypto policy timelines. While agency staff continue their work, no public discussion or draft text will emerge until the meeting is rescheduled. Until then, the sector must watch both the SEC and Congress, hoping one will finally provide the clarity it has long sought.
