The Clarity Act bill, considered one of the most important pieces of legislation in the United States concerning Bitcoin and the cryptocurrency market, has stalled in the Senate. The Senate failed to advance the Clarity Act before the August recess, delaying discussion of the bill until September.
Due to the postponement of the CLARITY Act's adoption to September, the U.S. Securities and Exchange Commission (SEC) is preparing to improve the regulatory framework for the public offering of certain investment contracts related to crypto assets.
According to Eleanor Terrett, host of the program Crypto In America, the Securities and Exchange Commission (SEC) will hold an open meeting on Friday to discuss rules defining the procedure for conducting an initial public offering (IPO) for certain investment contracts related to crypto assets.
In this context, the central question of the meeting is which rules will apply to initial public offerings (IPOs) of specific investment contracts related to crypto assets.
The draft text, on which the SEC has been working for several months, will be discussed internally, and a decision will be made on whether to put the proposed rules out for public comment. If approved internally, the SEC will begin a public comment period of at least 60 days.
In this context, it is not yet clear when and to what extent any rules will be implemented following the discussions at the meeting. This is because, if they receive approval within the SEC and are presented for public comment, the SEC will review the received comments and may make changes based on feedback if necessary. The final version of the text will be put to a final vote after a process lasting several months, after which the rules will take effect. This draft framework is commonly referred to as "Cryptocurrency Regulation."
While the SEC's decision was met positively by the market, TD Cowen analyst Jaret Seiberg described the SEC's proposal as the first of several regulations expected to provide greater clarity for cryptocurrency markets following the Senate's delay in addressing the issue.
*This is not investment advice.
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