SEC Delays Crypto Meeting, But Kelley Says Rules Can Precede CLARITY Act

The US Securities and Exchange Commission (SEC) has postponed its crypto meeting initially scheduled for Friday. Citing an unforeseen scheduling issue, the SEC moved the meeting to a later date. The open meeting was expected to discuss new regulations as the CLARITY Act faced fresh delays.

The current delay in the SEC’s crypto meeting has raised concerns about its impact on the broader digital asset industry. But, according to former SEC official Anne Kelley, the delay does not necessarily mean that the industry should wait until the crypto bill is passed for the regulator’s rulemaking

US SEC delays Friday’s crypto meeting

Earlier today, Fox Business journalist Eleanor Terrett reported on X that the SEC’s open meeting scheduled for Friday has been postponed. The SEC’s official statement read:

“The SEC is committed to delivering on the President’s agenda to bring certainty to the crypto space. Due to an unforeseen scheduling issue, tomorrow’s Open Meeting will be moved to a later date.”

As CoinCodex reported recently, the SEC has planned this meeting to discuss new crypto regulations, focusing on certain investment contracts. The move came on the heels of the Senate’s decision to delay the CLARITY Act vote to September after the lawmakers’ summer recess.

The SEC’s proposed “Regulation Crypto” framework was expected to bring much clarity to the crypto industry even in the absence of the market structure bill. The rule was expected to create streamlined procedures for certain digital asset offerings without requiring full SEC registration. The framework was also focused on making these platforms more decentralized, eventually allowing them to move outside the regulator’s oversight.

However, the meeting is now postponed. This has sparked widespread concerns as the move comes at a time when the industry was largely waiting for clearer rules. As progress in the CLARITY Act remains uncertain, the industry was hopeful about the SEC’s action. But now, as the open meeting is delayed, the industry is once again facing uncertainty.

SEC can advance rulemaking before CLARITY Act, says Kelley

Amid growing uncertainty, former SEC official Anne Kelley stated that the delay in the open meeting is not a huge issue. She added that it is not a sign that the rulemaking would only follow the CLARITY Act passage. Kelley argued that Congress has the power to create laws, but agencies like the SEC are responsible for creating rules that put those laws into practice.

According to her, Friday’s open meeting would have been only the first step in the regulator’s rulemaking process. Even if the meeting occurred, it would not have resulted in the immediate finalization of the rule. After the discussion, the proposal would have to move through different stages, including public comments. This means that the process could take several months. She stated,

“There is no instantaneous solution. Rules that last and survive judicial review have to follow the APA. We should want them to and this should not be the SEC vs Congress, they work in tandem.”

More importantly, Kelley noted that the SEC would not necessarily have to start over if the CLARITY Act becomes law while its rulemaking is still underway. If things proceed, the agency could update its proposal through a Supplemental Notice of Proposed Rulemaking (SNPRM). It can then continue working from the existing framework.