SEC Crypto Rules Delayed: What It Means for XRP, HBAR and XLM

The SEC’s expected crypto rules has been pushed back, adding another twist to the U.S. regulatory picture for digital assets. The agency canceled its August 14 meeting, which was expected to consider a proposal for a tailored offering regime for certain crypto investment contracts. The SEC cited an unforeseen scheduling issue and said the meeting would be moved.

At the same time, the SEC’s separate tokenization “innovation exemption” has reportedly been delayed again. Sources cited by Eleanor Terrett said the hold-up could be linked to negotiations around Section 10505 of the CLARITY Act, which deals with tokenized securities. 

Moving ahead with a separate SEC exemption could interfere with compromises still being negotiated. 

A March 17 SEC document identified 18 crypto assets whose tokens were described as not securities. The commonly cited list had 16, but footnote 51 on page 14 adds Algorand and Library Credit, bringing the total to 18.

The move could remove one of the biggest hurdles in crypto, but it may also reduce the compliance benefits currently enjoyed by XRP, HBAR and XLM.

XRP: Regulatory Advantage Gets More Time

For XRP, the rescheduling preserves its existing legal standing for longer. A formal pathway could eventually allow additional projects to seek clearer classification, reducing the edge currently enjoyed by assets with stronger recognition.