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SEC proposes a crypto asset offering framework as Clarity Act stalls

The SEC’s proposal would let token issuers raise up to $5 million over four years under a one time exemption and up to $75 million in any 12 month period under another exemption tied to reporting requirements.

Reported · Written up by our desk · Regulation

The U.S. Securities and Exchange Commission has proposed a crypto asset offering framework, moving ahead even as the broader Clarity Act faces delays in Congress. In the proposal, the SEC outlines a tailored offering regime intended to let token issuers raise capital in the U.S. without automatically triggering securities law registration.

Under the SEC’s plan, the agency would carve out two exemptions from Securities Act of 1933 registration. One exemption would allow issuers to raise up to $5 million in crypto over four years, while a second would permit up to $75 million in any 12 month period, but both pathways would require narrative disclosures made available to investors that describe a business and its risks.

The proposal also includes a conditional safe harbor, under which a token would not be treated as an investment contract after an issuer completes, or permanently abandons, the managerial work it promised. Bitcoin Magazine reports that pro crypto lawmakers had sought action before Congress left for the August recess, but the vote slipped to September.

Separately, the outlet notes that regulators are not waiting for legislation to advance. Comments are open for 60 days after publication in the Federal Register, and the proposal builds on the SEC’s March interpretation of how securities laws apply to crypto, according to Bitcoin Magazine.

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