SEC cancels crypto rule vote amid Senate recess and policy shift

The US Securities and Exchange Commission (SEC) has abruptly cancelled a scheduled meeting intended to vote on proposing new crypto-related rules. In a statement issued on Thursday, an SEC spokesperson confirmed the decision, citing an unforeseen scheduling issue that has moved the session originally set for Friday. The agency was poised to consider exemptions that would permit crypto startups to raise capital without adhering to traditional securities offering regulations.

This procedural delay occurs against a backdrop of legislative stagnation, following the US Senate’s departure from Washington for a five-week recess without voting on the Clarity Act. The bill, a primary legislative priority for the digital asset industry, would establish federal rules tailored specifically to cryptocurrencies. Lobbyists suggest that the chances of the bill’s passage have dimmed significantly following the recess, potentially leaving companies without the sounder legal footing the legislation was designed to provide.

Under the leadership of SEC Chair Paul Atkins, the agency has executed a distinct reversal in its regulatory approach to the sector. Atkins has outlined sweeping plans to overhaul capital markets regulations to accommodate tokens and blockchain-based trading, moving away from the aggressive stance taken by the SEC’s previous Democratic leadership. The prior administration had sued multiple crypto companies, alleging that their tokens functioned as securities requiring full registration and disclosure.

Crypto industry participants generally argue that most tokens resemble commodities rather than securities, a position strongly backed by Atkins. In March, the Chair indicated that the SEC would propose rules creating a safe harbour to facilitate the sale of tokens and capital raising. Atkins also signalled consideration of a fit-for-purpose startup exemption, which would allow entrepreneurs to raise specific amounts of money or operate for a finite period while remaining exempt from certain SEC rules.

The Trump administration has prioritised crypto reform, with President Trump having courted crypto funding during his campaign and his family profiting from its own token. Since taking office, the SEC has moved to rescind stringent crypto accounting guidance and dismissed lawsuits against major industry players including Coinbase and Binance. The regulator is also developing an innovation exemption, intended to allow companies to experiment with new digital asset business models, such as blockchain-based stocks, without full compliance with all disclosure and investor safeguard requirements.