Key highlights:

  • The SEC is expected to hold a meeting on Friday to discuss new crypto regulations
  • The regulators may launch a new framework for crypto-based investment contracts
  • The move comes as the Senate has pushed the CLARITY Act vote to September

As the much-awaited CLARITY Act has faced fresh hurdles, the US Securities and Exchange Commission (SEC) is preparing to launch new crypto regulations. The regulator is expected to discuss a new framework for certain crypto investment contracts this Friday. During this meeting, the SEC may provide hints on how it plans to regulate crypto assets that fall under the securities law.

This significant development comes as the crypto industry has been disappointed by the Senate’s failure to pass the market structure bill before its summer recess. As the industry continues to push for clearer crypto regulations, the SEC has taken the initiative.

SEC eyes new crypto regulations for investment contracts

According to the latest reports, the US SEC is expected to hold a meeting this Friday, where the regulators will discuss introducing new crypto regulations for digital asset investment contracts. The regulators haven’t revealed the exact details of the meeting. But as per estimations, the meeting may focus on the crypto regulations that allow companies to offer certain digital assets to investors.

Especially, the SEC’s new crypto regulation will be applicable to crypto assets that are considered investment contracts under the existing securities laws. Tokenized assets and other digital assets that meet the criteria of the Howey test therefore come under the SEC’s new framework. If the regulator proceeds with these crypto regulations, companies will have a better understanding of the crypto investment offerings.

In addition, the new crypto regulations could make it easier for eligible crypto projects to raise money through legal public offerings. Currently, many crypto companies use exemptions such as Regulation D or Regulation A to raise money without completing the full SEC registration process. But with the new framework, the companies could have more direct and clearly defined rules even if they are required to follow the securities laws.

CLARITY Act delay puts SEC’s move in focus

It is worth noting that the latest action comes on the heels of the CLARITY Act’s delay in the Senate. While the crypto industry expected that the Senate would pass the crypto bill before its August recess, the lawmakers recently announced the postponement. As CoinCodex reported, Senate Majority Leader John Thune revealed that Congress has decided to push the crypto bill’s vote into September when the return after the break. 

The crypto bill has faced multiple delays so far. The latest hurdle has sparked intense speculation and concerns about the future of crypto regulation in the US. Amid these growing concerns, the SEC has stepped forward, promising to bring clarity to the industry. This has already been echoed by Bitwise CIO Matt Hougan. Last week, Hougan stated that the crypto industry does not need the CLARITY Act for its progress. He believed that even if the bill is stalled, the SEC could bring new rules that could define the industry’s future.

Now, with the SEC’s latest development, the crypto industry may have some reassurance that regulatory efforts are still progressing despite the CLARITY Act’s delay. However, the SEC’s crypto regulations will not replace the market structure bill. This means that the industry should still wait for Congress to establish a broader framework.