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SEC Cancels 'Regulation Crypto' Meeting Amid White House, Wall Street Concerns

Created at 13 Aug · 10:31 PM2 sources↑ Market-relevant2 events
IN SHORT

The U.S. Securities and Exchange Commission (SEC) has again delayed its 'innovation exemption' for tokenized securities due to concerns from the White House and Wall Street firms. The cancellation of a planned 'Reg Crypto' rulemaking meeting further postpones efforts to clarify digital asset regulations.

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Who's Involved

U.S. Securities and Exchange Commission
canceled planned meeting on crypto rulemaking and tokenization exemption
White House
expressed concerns that could complicate crypto legislation negotiations
SIFMA
Wall Street trade group arguing for formal rulemaking process
SEC Chairman Paul Atkins
had discussed 'Reg Crypto' rulemaking as a central point of his digital assets plan
SEC Cancels 'Regulation Crypto' Meeting Amid White House, Wall Street Concerns

↳ Why This Matters

The delay in the SEC's 'innovation exemption' and 'Regulation Crypto' rulemaking postpones efforts to provide regulatory clarity for tokenized securities, a rapidly growing area of interest for Wall Street and the broader financial industry.

Key facts

  • The SEC canceled a planned meeting to discuss 'Regulation Crypto' and an 'innovation exemption' for tokenized securities.
  • The delay is due to concerns from the White House and Wall Street firms.
  • The White House worries the exemption could complicate ongoing congressional negotiations on digital asset legislation.
  • Wall Street trade group SIFMA argues that significant market-structure changes require a formal rulemaking process, not exemptions.
  • The SEC staff are reportedly examining the agency's legal authority to issue such broad relief.

The U.S. Securities and Exchange Commission (SEC) has again delayed its anticipated "innovation exemption" for tokenized securities, citing concerns from the White House and Wall Street firms. The agency also canceled a planned meeting where it was expected to discuss "Regulation Crypto" rulemaking and details of the exemption.

Sources familiar with the matter indicated that the White House is concerned the exemption could complicate ongoing congressional negotiations over the Digital Asset Market Clarity Act. Additionally, major financial institutions, including the trade group SIFMA, are advocating for significant market-structure changes to be implemented through a formal rulemaking process rather than exemptions.

The SEC staff are reportedly reviewing the agency's legal authority to grant such broad relief, including whether sufficient economic analysis and procedural steps have been completed. The exemption, previously expected in May and then this Friday, aimed to ease regulatory hurdles for firms issuing and trading tokenized securities on blockchain rails.

Tokenization is gaining momentum across Wall Street, with exchanges and clearinghouses testing blockchain-based trading and analysts projecting a multitrillion-dollar market for tokenized assets. However, debates continue over how these assets can be brought on-chain and integrated into the existing U.S. market structure and securities rules.

Frequently asked questions

It is a proposed regulatory measure by the SEC intended to ease rules for firms issuing and trading tokenized securities on blockchain technology.

Concerns have been raised by the White House regarding potential complications with ongoing congressional legislation and by Wall Street firms advocating for a formal rulemaking process.

'Regulation Crypto' is a separate rulemaking effort by the SEC aimed at creating rules for projects fundraising using tokens.

What Happens Next

01The SEC may wait for the outcome of the Digital Asset Market Clarity Act negotiations.
02Industry insiders expect the tokenization exemption effort to align with broader legislative progress.

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Cadence

How It Developed

The SEC postponed its Regulation Crypto meeting due to an unforeseen scheduling issue.
The SEC has again delayed its planned 'innovation exemption' for tokenized securities.
The White House fears the move could complicate congressional negotiations over the Digital Asset Market Clarity Act.
Major financial firms, led by SIFMA, argue that market-structure changes should go through a formal rulemaking process.
The SEC canceled its planned meeting for Friday late Thursday.

Sources

T1
SEC cancels long-awaited proposal of Reg Crypto, postponing meeting without new dateCoinDesk
T1
U.S. SEC to again delay 'innovation exemption' for tokenization amid Wall Street, White House concernsCoinDesk

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