SEC Advances Landmark 'Regulation Crypto' Framework for Digital Asset Offerings
The US Securities and Exchange Commission (SEC) is moving forward with its proposal for Regulation Crypto Assets, a bespoke offering regime under the Securities Act for investment contracts involving crypto assets. This move follows the Senate's failure to pass the Digital Asset Market Clarity Act before the August recess.
According to TD Cowen analyst Jaret Seiberg, the SEC proposal could be the first in a series of proposals for crypto regulations. The proposal aims to provide an exemption for qualifying crypto projects to raise capital without automatically triggering SEC registration requirements.
The Regulation Crypto Assets framework may also describe situations where its securities jurisdiction no longer applies to projects once the managerial efforts involved in an investment contract have been exhausted.