SEC: Cancellation of the crypto meeting and freezing of the file, impacts on the market

The SEC canceled its open meeting initially scheduled for August 14, putting its proposed crypto regulation, “Regulation Crypto,” on pause. This cancellation, without a new date set, comes after the failure of the vote to close the Clarity Act in the Senate, postponed to September 15. At the same time, the SEC froze its “innovation exemption,” intended to facilitate the issuance and trading of tokenized securities under existing law, citing concerns from the White House and Wall Street over its legal basis and potential impact.

The markets were quick to react, with significant declines for major players in the crypto market: Bullish lost up to 11.2%, Figure Markets around 9%, Coinbase 2%, Circle 4%, and Uniswap saw the biggest 24-hour drop in the crypto market with 7%. These companies had integrated into their investor discourse the hope of easier access to tokenized securities thanks to the expected regulations from the SEC, which made them particularly vulnerable to postponement.

Despite these delays, some analysts emphasize that the underlying dynamic of the tokenization of financial assets is advancing, particularly among traditional banks and stock exchanges, independently of American regulations. However, investors' patience is being tested by a year of cumulative delays.

For the Clarity Act, Senator Thune filed a closing motion for a procedural vote on September 15, requiring 60 votes in a Senate where Republicans have only 53, making adoption this year increasingly uncertain according to Galaxy Research, which puts the chances at 30%.