Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Add to Google Preferred Sources
The U.S. Securities and Exchange Commission (SEC) abruptly canceled a public meeting it had scheduled to discuss crypto asset rulemaking. According to sources familiar with the matter, concerns over the Digital Asset Market Clarity Act—known as the “Clarity Act”—currently moving through Congress are behind the decision. The White House and Congress reportedly determined that the SEC’s independent action could negatively impact negotiations on the Clarity Act ahead of its first Senate vote next month. With rulemaking and implementation potentially taking up to two years, the final regulatory framework could coincide with the next administration taking office. Meanwhile, the White House is set to meet with crypto and prediction market industry CEOs, and the CFTC’s Innovation Advisory Committee will hold its first meeting to discuss crypto regulation and prediction market oversight.
Key Elements
The U.S. Securities and Exchange Commission (SEC) abruptly canceled a public meeting it had announced to discuss crypto asset rulemaking. While no official reason was given, multipleset Market Clarity Act—known as the “Clarity Act”—currently moving through Congress are behind the decision
The SEC announced early last week that it would hold a public meeting to discuss a “Reg Crypto” rulemaking proposal outlining how crypto companies could raise funds using tokens and issue their own digital assets outside SEC jurisdiction. The meeting was also expected to unveil portions of the long-delayed innovation exemption, which addresses how security token issuers can handle underlying securities.
However, the SEC notified late Thursday that the meeting was canceled and would be rescheduled at a later date. According to industrye innovation exemption
Clarity Act Negotiations as a Key Variable
Concerns over the Clarity Act are cited as the direct reason for the cancellation. The White House and Congress reportedly determined that the SEC’s independent action could negatively impact ongoing negotiations on the Clarity Act ahead of its first Senate vote next month. If the SEC were to proceed with rulemaking, it could complicate the legislative negotiation landscape.
This suggests that further SEC action is unlikely before the Senate recesses again in early October. Earlier this month, when it became clear the Clarity Act would not be brought to a vote before the Senate’s August recess, some in the industry had expressed hope that regulators might step in if Congress failed to act.
However, regulatory actions face limitations: they can be challenged in court and are relatively easy for a subsequent administration to overturn. Unlike legislation, rules carry significant risk of being scrapped when administrations change.
Race Against Time
With the rulemaking process delayed, timing concerns are also coming to the fore. The SEC must solicit public comment through the formal rulemaking process, publish a revised proposal, and then finalize the rule. Companies would then need an implementation period to achieve compliance.
According to industryan additional year needed for companies to prepare for implementation. In that scenario, the final regulatory framework could be finalized around the time the next administration takes office, raising uncertainty about regulatory continuity
White House to Meet with Industry CEOs
Meanwhile, the White House is scheduled to meet with crypto and prediction market industry stakeholders on the 19th at 2:30 p.m. Eastern Time at the Eisenhower Executive Office Building near the White House in Washington, D.C. Michael Selick, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), and Paul Atkins, SEC Chairman, are also expected to attend.
Industrylink, Kalshi, Paradigm, Andreessen Horowitz (a16z), and the Digital Chamber have been invited. Patrick Witt, Director of the White House Digital Assets Advisory Committee, is also on the attendee list
The event serves as a pre-meeting ahead of the CFTC Innovation Advisory Committee’s first meeting the following day. The Innovation Advisory Committee will hold its inaugural meeting on the 20th from 1 p.m. to 4 p.m., focusing on three areas: crypto asset regulation, artificial intelligence (AI), and prediction markets.
The committee includes 35 members, including Shane Coplan, CEO of Polymarket; Tarek Mansour, CEO of Kalshi; Brad Garlinghouse, CEO of Ripple; as well as representatives from Cboe, CME Group, DTCC, and Nasdaq.
The meeting is drawing particular attention given the delayed Senate consideration of the Clarity Act. Senate Majority Leader John Thune recently scheduled a cloture vote for September 15 to advance the bill. Cloture requires 60 Senate votes, and even if the vote passes, the bill itself would still not be finally approved.
Prediction Market Regulatory Authority Also on the Agenda
Regulatory authority over prediction markets is also expected to be a key issue at the White House meeting. The CFTC Innovation Advisory Committee plans to discuss the respective roles of federal and state governments in prediction market oversight, as well as ongoing litigation and regulatory enforcement actions in various states.
Chairman Selick has consistently emphasized that jurisdiction over event contracts—where investors wager on outcomes such as elections or sporting events—rests with the CFTC. The CFTC has filed lawsuits against multiple states in response to state-level regulatory actions targeting Kalshi and Polymarket.
President Trump also backed Chairman Selick in May, stating that the CFTC’s exclusive jurisdiction over prediction markets is “very important.” As a result, the White House meeting is likely to address not only crypto market structure legislation but also the federal-state conflict over prediction market regulatory authority.
Once added, BigGo Finance appears first in Google Search Top Stories, so you get the broadest, most up-to-the-minute, and most comprehensive global financial news first.
Source: finance.biggo.com