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SEC proposes “Regulation Crypto Assets” with offering exemptions
The proposal opens a 60-day public comment period and sets two exemption tracks, including startup offerings up to $5 million over four years and others up to $75 million per year.
The U.S. Securities and Exchange Commission has issued its first major crypto rule proposal under Chairman Paul Atkins, creating a new framework intended to govern how certain digital assets are offered without automatically triggering specific securities law requirements, according to CoinDesk.
The SEC’s proposal would establish “Regulation Crypto Assets” as a potential first permanent rule for digital assets after Congress has not passed a comprehensive crypto market structure law. It follows an earlier surprise cancellation of a meeting that had been intended to vote on the same rule last week.
The regulator opened the process for 60 days of public comments, after which it can develop a final rule in the coming months. The proposal is designed to provide regimented paths for launching crypto projects while allowing some assets to avoid being treated as “investment contracts” under securities law, CoinDesk reported.
CoinDesk said the proposal includes two exemption tracks for crypto offerings, both requiring narrative disclosures for investors. One track contemplates startup offerings of up to $5 million in a four-year period, while the other contemplates offerings up to $75 million in each one-year period, with the second track also requiring financial statements and ongoing reporting requirements.