The Securities and Exchange Commission (SEC) delayed consideration of a major crypto regulatory framework after White House officials raised concerns that a separate proposal could complicate efforts to pass cryptocurrency legislation, according to a Semafor report citing people familiar with the matter.
The SEC had been scheduled to consider two crypto-related proposals at a meeting that was later canceled. The confusion centered on which measure the commission intended to advance, the people said.
The episode comes as the Trump administration pushes for regulatory changes around digital assets while Congress considers the CLARITY Act, a market-structure bill that remains pending in the Senate. The SEC ultimately moved ahead with its broader crypto framework on August 18, when it formally proposed rules covering certain crypto assets and transactions.
White House concerns complicated SEC timetable
The SEC had planned to consider its crypto framework alongside a separate proposal known as the innovation exemption, according to Semafor.
Only the broader framework had been scheduled for approval, while the innovation exemption was not. According to the report, White House officials were concerned the second proposal could interfere with congressional negotiations over crypto legislation.
An SEC spokesperson previously attributed the canceled meeting to an “unforeseen scheduling issue.” Another person familiar with the process disputed that the CLARITY Act had played a role, saying the regulations were still technically under review. The SEC later advanced the framework through an individual commissioner vote rather than the canceled meeting.
SEC moves ahead with crypto framework
The agency’s action ultimately produced a proposed framework covering the application of federal securities laws to certain crypto assets and transactions.
Among other provisions, the proposal includes exemptions for certain token offerings and a potential safe harbor for some crypto assets that meet specified conditions. The SEC said the proposal is subject to a public-comment period.
The move follows an earlier SEC interpretation issued in March that sought to clarify how federal securities laws apply to different categories of crypto assets and activities. The commission said that interpretation was intended to complement congressional efforts toward comprehensive market-structure legislation.
That distinction is important: the SEC’s rulemaking does not replace legislation from Congress. The agency can establish rules and interpretations within its existing authority, while a federal market-structure law would establish statutory requirements that could outlast changes in agency leadership.
CLARITY Act remains unresolved in Senate
The regulatory developments come as the crypto industry’s legislative priority remains stalled on Capitol Hill.
The CLARITY Act would establish a broader federal framework for digital assets, including rules intended to clarify the respective roles of the SEC and Commodity Futures Trading Commission.
The Senate is expected to consider the legislation after its August recess. The delay has increased the importance of agency-level action as regulators attempt to address issues that Congress has yet to settle through legislation.
The SEC itself has described its crypto work as complementary to congressional efforts rather than a substitute for them. Chairman Paul Atkins said in March that the agency’s interpretation was intended to serve as a bridge while Congress works on market-structure legislation.
White House crypto meeting adds to timing
The regulatory dispute coincides with a White House meeting with cryptocurrency executives on Wednesday. According to a previous CryptoTimes report, expected participants include SEC Chairman Paul Atkins, CFTC Chairman Michael S. Selig and White House crypto adviser Patrick Witt, alongside representatives from major crypto and financial firms.
The gathering comes one day before the CFTC’s Innovation Advisory Committee holds its inaugural meeting, where officials and industry participants are scheduled to discuss crypto regulation, artificial intelligence and prediction markets.
The White House has also decided not to include prediction-market representatives in Wednesday’s gathering, according to a White House official cited by Semafor. The event is instead expected to focus on cryptocurrency.
Agency action faces a different test than legislation
The sequence illustrates the different paths the administration is pursuing on crypto policy. The SEC can change its regulatory approach through rulemaking and other actions within its statutory authority. Congress, meanwhile, would need to pass legislation to create a broader and more durable market-structure framework.
The SEC’s latest proposal therefore represents progress on the regulatory front, but it does not resolve the legislative questions at the center of the CLARITY Act.
For the crypto industry, the two tracks now remain intertwined: regulators are moving forward with their own framework while lawmakers prepare to revisit legislation that would determine the longer-term division of authority over digital-asset markets.
Also Read: White House Crypto Talks Set for Today as Industry Pushes for Long-Stalled CLARITY Act
