The US Securities and Exchange Commission (SEC) has cancelled a public meeting scheduled for Friday, August 15, to release the first and largest crypto regulatory framework under Chairman Paul Atkins. The meeting, which was set to discuss the draft “Regulation Crypto,” was suddenly removed from the calendar due to official reasons of unexpected scheduling issues, without providing a replacement date.
This regulation was originally designed to establish a limited framework. The goal was to provide room for crypto projects to offer securities without immediately triggering full registration requirements with the SEC. The rule also set up an official exit path from regulatory oversight for crypto projects that have proven their level of decentralization.
The cancellation of this important agenda aligns with other delays within the same agency. The innovation exemption rule for stock tokenization is also reportedly delayed again, although parts of it were scheduled for release this week. Three industry insiders revealed that the White House is concerned this exemption rule could spark political backlash. They do not want to take risks while Congress is still in the middle of negotiating the draft Digital Asset Market Clarity Act.
Why Is Wall Street Concerned?
The White House’s cautious stance is not the only obstacle. The Securities Industry and Financial Markets Association (SIFMA), Wall Street’s main lobbying group, has emerged as one of the parties holding back the rule. SIFMA is concerned that blockchain-based asset trading venues would clash with Regulation NMS rules, specifically the Order Protection Rule.
The focus of SIFMA’s concern lies in broker operating standards. They believe that the rule requiring brokers to seek the best execution price quality for customers would become unclear and difficult to apply when transactions are processed through decentralized exchanges or automated market maker (AMM) mechanisms.
This situation somewhat contradicts previous signals from the SEC. In June 2026, the agency had already proposed the elimination of Rule 611 from Reg NMS. The planned removal of the Order Protection Rule was actually viewed by many in the industry as a step toward clearing the most significant hurdle for the pace of asset tokenization.
Holding Back a $5.5 Trillion Market
The potential funds held back due to these regulatory delays are massive. Citi analysts project that the tokenized asset market could reach $5.5 trillion by 2030. Traditional market infrastructure has also begun to adapt to accommodate this new system. The DTCC, the institution that has long served as the backbone of US securities trading, processed its first live production transaction for tokenized securities last month.
Now, the driver of this innovation is back in the hands of US Senate politicians. The fate of the draft Digital Asset Market Clarity Act remains in limbo and is uncertain to pass the 60-vote threshold in the September session. As long as legislative certainty remains unresolved, the rules protecting stock tokenization innovation will likely remain tucked away in the regulators’ desk drawers.
Reported from CoinDesk.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
