Key facts
- The SEC canceled a meeting to launch formal rulemaking for Regulation Crypto Assets.
- Industry pushback from Wall Street's SIFMA contributed to the cancellation.
- SIFMA reportedly threatened legal action over statutory authority.
- The SEC is developing a framework for 24/7 trading of tokenized U.S. stocks.
- This framework may include an 'innovation exemption'.
- The goal is to integrate blockchain technology into traditional financial markets.
- The framework aims to maintain federal securities rules for tokenized stock trading.
The U.S. Securities and Exchange Commission (SEC) has abruptly canceled a planned meeting to formally launch rulemaking for a new crypto fundraising framework, known as Regulation Crypto Assets. This decision was reportedly influenced by substantial pushback from Wall Street industry groups, including SIFMA, which raised concerns about the SEC's statutory authority and threatened legal action. The cancellation signals a pause in the SEC's efforts to establish specific regulations for crypto fundraising mechanisms.
In parallel, the SEC is actively developing a separate regulatory framework that could enable tokenized U.S. stocks to trade continuously, 24 hours a day, seven days a week, on blockchain networks. This initiative is designed to foster the integration of blockchain technology into traditional financial markets. To achieve this, the SEC is considering an 'innovation exemption' that would allow for such novel trading structures while ensuring compliance with federal securities regulations. The goal is to modernize market infrastructure and explore new avenues for trading U.S. equities.
This dual approach by the SEC highlights a complex and evolving regulatory landscape for digital assets and blockchain technology within traditional finance. While one initiative faces industry opposition and is halted, another is moving forward with the aim of adapting existing markets to new technological capabilities. The development of a 24/7 trading framework for tokenized stocks represents a significant step towards potentially reshaping market operations and accessibility.