The Clarity Act, considered one of the most important pieces of legislation in the US regarding Bitcoin and the cryptocurrency market, is stalled in the Senate. The Senate failed to advance the Clarity Act before the August recess, postponing discussion of the draft until September.
Following the postponement of the CLARITY Act until September, the U.S. Securities and Exchange Commission (SEC) is preparing to advance the regulatory framework for the public offering of certain investment contracts involving crypto assets.
According to Eleanor Terrett, host of the Crypto In America program, the SEC will hold an open meeting on Friday to discuss rules for establishing an initial public offering (IPO) framework for certain investment contracts involving crypto assets.
In this context, the central issue of the meeting is which rules will apply to the initial public offerings (IPOs) of specific investment contracts involving crypto assets.
The draft text, which the SEC has been working on for months, will be discussed internally, and a decision will be made on whether to submit the proposed rules to public comment. If approved internally by the SEC, a public comment period of at least 60 days will begin.
In this context, it is not yet clear when and to what extent any regulations will be implemented following the discussions at the meeting. Because if it receives approval within the SEC and is submitted to public opinion, the SEC will review the comments received and may make revisions if necessary based on the feedback. The final version of the text will be submitted to a final vote after a process that will take months, and the rules will then come into effect. This draft framework is generally referred to as “Regulation Crypto.”
While the SEC’s move was positively received in the market, TD Cowen analyst Jaret Seiberg described the SEC’s proposal as the first of several regulations expected to provide greater certainty for crypto markets following the Senate’s postponement.
*This is not investment advice.
