Exemption Put on Hold as Legislative Talks Drag On The U.S. Securities and Exchange Commission has again delayed the release of its planned innovation exemption for tokenized securities, with
The U.S. Securities and Exchange Commission has again delayed the release of its planned innovation exemption for tokenized securities, with details unlikely to surface in the near term. Crypto journalist Eleanor Terrett reported that she had been told details of the exemption are expected to remain under wraps for the time being.
Terrett indicated that specific details of the measure are unlikely to be released in the near term, as ongoing discussions among stakeholders continue over Section 10505, the tokenization provision of the CLARITY Act.If the SEC pushes ahead with the exemption on its own, it could unsettle consensus around those provisions.As a result, the measure may remain on hold until the direction of the CLARITY Act becomes clearer.
Section 10505 of the latest Senate CLARITY Act text deals directly with the tokenization of securities, creating an overlap between congressional negotiations and the SEC's own tokenization plans.The Senate Banking and Agriculture committees' July 22 section-by-section summary states that tokenized securities would remain securities for regulatory purposes, and directs the SEC to study their treatment, including custody requirements, consumer protection, cross-border issues and coordination between regulators.
The SEC cancelled the August 14 meeting where commissioners were expected to decide whether to formally propose a tailored regime for crypto offerings, citing an unforeseen scheduling issue.The statement, issued at 5:13pm on August 13, said the meeting would be moved, with no new date included.
The now-delayed session had been set for 10am on Friday August 14 at the SEC's Washington headquarters, where the three-member commission was due to consider whether to formally propose Regulation Crypto, a framework built around tailored fundraising exemptions for token projects.The agency had announced the meeting on unusually short notice on August 10, giving only four days warning rather than the standard week required for public sessions.
The Senate failed to advance a procedural cloture vote on the Digital Asset Market Clarity Act before departing for its August recess, pushing the broader legislative framework for crypto market structure into limbo.Senate Majority Leader John Thune has filed to schedule a procedural vote on the bill when lawmakers return in mid-September. Until then, the SEC has limited room to act unilaterally without risking interference in the congressional process.
Sources:Crypto Times: SEC Tokenization Exemption Delayed Over CLARITY ActBloomberg: SEC Delays Crypto Regulation Meeting in Latest Industry SetbackCoinDesk: SEC Cancels Long-Awaited Proposal of Reg Crypto
