SEC Poised to Unveil Two Major Crypto Initiatives

Bloomberg reported that the second initiative could be the SEC's innovation exemption. The framework would make it possible to experiment with blockchain-based versions of traditional securities.

The release of the innovation exemption has been delayed after various consultations. There were some concerns about tokens representing publicly traded companies without the companies' consent. However, the SEC has come up with a mechanism that would allow companies to block the issuance of third-party tokenized versions of their shares.

Controversial regulatory efforts 

CFTC Chairman Michael Selig has also indicated that his agency is prepared to continue developing crypto market-structure rules without waiting for Congress, according to a recent Politico report.

Sen. Elizabeth Warren, a Massachusetts Democrat, and some other Democrats have repeatedly slammed the regulatory agencies for being too closely aligned with the crypto industry.

Critics warn that agency rulemaking cannot provide the same durability as legislation. SEC and CFTC rules could face legal challenges or be reversed by future agency leadership.

The Clarity Act delay 

As reported by U.Today, the Senate left Washington for its five-week August recess without holding the highly anticipated vote due to various disagreements.

Senate Majority Leader John Thune subsequently filed a cloture motion that sets up a September 15 vote that will determine the bill's fate. The vote will require 60 senators.

The Senate's schedule makes the path forward increasingly difficult. Lawmakers return September 14 and are scheduled to be in session for only 14 days before another election-related recess.

Failure to secure the required 60 votes could effectively kill the bill for the year.

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