The U.S. Securities and Exchange Commission is preparing to unveil two major crypto initiatives this week, even as the Senate stalls on the Clarity Act until September. The moves suggest regulators are ready to advance parts of the crypto market-structure agenda without waiting for Congress.
The SEC is preparing to roll out two major crypto initiatives as lawmakers struggle to advance the Clarity Act, according to people familiar with the matter cited by Bloomberg. Regulators appear ready to move ahead with parts of the crypto market-structure agenda without waiting on legislation.
Two initiatives on the table
According to Bloomberg's sources, the SEC could unveil details of its long-awaited innovation exemption for tokenized securities as soon as this week. The agency is also scheduled to consider a new framework for certain crypto-asset investment contracts this week, with the regulatory push centered on designing a tailored offering regime for those contracts.
The commission has confirmed it will consider whether to issue the proposal at its August 14 open meeting. The innovation exemption would let firms experiment with blockchain-based versions of traditional securities. Its release has been delayed after various consultations, including concerns about tokens representing publicly traded companies without those companies' consent — the SEC has since come up with a mechanism that would let companies block the issuance of third-party tokenized versions of their shares.
CFTC signals a parallel push
CFTC Chairman Michael Selig has also indicated his agency is prepared to keep developing crypto market-structure rules without waiting for Congress, according to a recent Politico report. However, Sen. Elizabeth Warren, a Massachusetts Democrat, and other Democrats have repeatedly criticized the agencies for being too closely aligned with the crypto industry. Critics warn that agency rulemaking cannot provide the same durability as legislation. SEC and CFTC rules could face legal challenges or be reversed by future agency leadership.
Clarity Act pushed to September
The Senate left Washington for its five-week August recess without holding the anticipated vote on the Clarity Act due to various disagreements. Senate Majority Leader John Thune has since filed a cloture motion that sets up a September 15 vote on the bill's fate, which will require 60 senators to pass.
Lawmakers return September 14 but are scheduled to be in session for only 14 days before another election-related recess. Failure to secure the required 60 votes could effectively kill the bill for the year.
Source: U.Today
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