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SEC cancels crypto fundraising meeting, delaying possible new regime

The SEC’s Aug. 13 cancellation notice provided no reason or replacement date for a meeting that could have shaped eligibility, disclosures, and resale conditions for token-linked investment contracts.

Reported · Written up by our desk · Regulation

The US Securities and Exchange Commission has canceled an open meeting scheduled for Friday morning that was intended to kick off the first public look at a possible crypto fundraising framework, according to CryptoSlate. The agency’s Aug. 13 cancellation notice did not give a reason or a replacement date.

The canceled agenda had called for commissioners to consider issuing a proposal for a tailored offering regime covering certain investment contracts involving crypto assets. An affirmative vote would have opened a rulemaking process, but adoption, an effective date, and any issuer ability to rely on final exemptions would have required additional steps.

With the meeting canceled, the SEC is effectively delaying any proposal text that could have clarified eligibility standards, disclosure duties, and resale conditions for token issuers. While current law remains unchanged, the SEC’s earlier March interpretation emphasized how to distinguish a crypto asset from the transaction in which it is sold.

CryptoSlate notes the March interpretation separates a token from whether the overall arrangement is an investment contract. A crypto asset that is not itself a security can still be offered as part of an investment contract if buyers invest in a common enterprise with reasonable expectations of profits from the issuer’s essential managerial efforts, and the classification can change as a project develops.

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