New developments continue to emerge regarding the planned regulation of the U.S. cryptocurrency market. First, a scheduled Friday meeting of the Securities and Exchange Commission (SEC), which was set to discuss new regulatory frameworks for initial public offerings of crypto assets, was canceled at the last minute. This meeting was expected to initiate the SEC's formal rulemaking process for this new system, known as "Regulation of Crypto Assets."
One of the first to announce the cancellation was American journalist Eleanor Terrett, who stated in her report that the official reason provided by the Securities and Exchange Commission was an "unforeseen scheduling issue."
While market speculation continues regarding the reasons for the cancellation, some sources are now pointing fingers at Wall Street.
Is the Securities and Exchange Commission Under Pressure from Wall Street?
According to Decrypt, Wall Street played a role in the cancellation of the SEC's Friday meeting. Sources report that pressure from the Securities Industry and Financial Markets Association (SIFMA), a major Wall Street organization, was a decisive factor in the cancellation.
According to sources who spoke with Decrypt, SIFMA opposed the SEC creating a framework that could grant crypto companies and tokenization firms broad exemptions from existing securities market regulations.
The report states that SIFMA's main objection centers on whether the SEC can create such a broad regulatory framework using its existing statutory authority.
Sources also reported that SIFMA made it clear it might take legal action if the SEC proceeded with such a step. This reportedly influenced the SEC's decision to postpone the scheduled meeting.
Currently, according to sources, the real behind-the-scenes discussion revolves around the Securities and Exchange Commission's (SEC) regulatory authority over the cryptocurrency market and Wall Street's objections to this regulation.
Notably, these events occurred immediately after the U.S. Senate failed to make progress on passing the CLARITY Act before its August recess, and consideration of the CLARITY Act was postponed until September.
According to experts, the SEC's independent efforts to develop comprehensive rules for the cryptocurrency market, coupled with Congress's attempt to establish a legal framework through the Clarity Act, make the debate over which institution and on what basis will shape U.S. cryptocurrency regulation even more significant.
It remains unclear when the SEC will reschedule the meeting or whether the "Regulation of Crypto Assets" process will continue.
*This is not investment advice.
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