Crypto Market Update: SEC Cancels Vote on Crypto Startup Rules

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Ether and altcoin price update

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Today's crypto news to know

SEC cancels vote on capital-raising exemptions for crypto startups

The US Securities and Exchange Commission (SEC) abruptly canceled a Friday (August 14) meeting where commissioners planned to vote on new capital-raising rules for crypto startups.

An SEC spokesperson cited an unforeseen scheduling issue for moving the meeting to an unannounced date.

The agency intended to consider proposed exemptions allowing digital asset startups to raise capital without registering under traditional securities offering frameworks.

SEC Chair Paul Atkins previously outlined plans for a fit-for-purpose startup exemption that provides entrepreneurs a finite window to build decentralized networks without triggering full registration requirements. Atkins is also developing an innovation exemption allowing firms to experiment with blockchain-based stocks and novel digital asset business models.

The abrupt postponement follows the US Senate's departure for a five-week August recess without holding a vote on the Clarity Act.

Binance cuts off transactions with HTX, 10 crypto platforms

Binance will halt all transaction processing for HTX and 10 additional cryptocurrency trading platforms beginning August 23.

The exchange cited new regulatory mandates and international sanctions enforcement for restricting access to platforms including HTX, Rapira, ABCeX, EXMO, and BitPapa.

Binance warned that its compliance team will hold any transactions attempted on or after August 23 and may lock affected user wallets during formal reviews.

The restrictions directly follow the European Union's 21st sanctions package against Russia, which targeted 14 crypto service providers for assisting sanctions evasion.

The British government previously designated Huobi Global S.A. in May, while the Office of Financial Sanctions Implementation confirmed that sanctions extend directly to HTX due to corporate ownership. HTX disputed the British designation, claiming Huobi Global S.A. operates as a separate legal entity without impacting exchange customer funds.

Binance previously blocked access to Shelbit and Aban Tether Exchange on August 7 after the US Treasury sanctioned both platforms over ties to Iranian financial networks.

Washington court orders Kalshi to block in-state betting

A King County Superior Court judge ordered prediction market platform Kalshi to cease operating most of its business within Washington state.

The ruling determined that Kalshi likely violated the state's Gambling Act and Consumer Protection Act by running an illegal gambling operation. The court order requires Kalshi to implement IP address and residency geofencing by August 19 to block local residents from wagering on sports, elections, politics, entertainment, and public figure mentions.

Washington Attorney General Nick Brown accused the platform of generating profits by promoting illegal wagers on sports, natural disasters, and geopolitical conflicts.

The injunction also prohibits Kalshi from running advertisements in Washington after prosecutors submitted promotional materials showing users how to circumvent state betting restrictions.

The state court order arrived two days after the Commodity Futures Trading Commission (CFTC) invoked emergency powers to compel Kalshi to maintain nationwide trading operations.