They're stating clearly that it won't be extended beyond Aug 12. Why would they do that? Kinda like cops announcing they won't be on the streets after midnight... And what the rulemaking part? I mean, does the SEC intend to come out with some kind of a permanent rule barring naked shorts against institutions which are borrowing from the Fed's emergency window?

Naked shorting without intent to borrow has always been illegal. They should clarify the rules and remove things like 'intent'.