SEC and FASB Unleash Regulatory Relief for Crypto Industry
The crypto industry received a significant boost from two key regulatory bodies on Tuesday. The Securities and Exchange Commission (SEC) announced a proposal for new 'Regulation Crypto Assets' rules, which would provide exemptions to the Securities Act of 1933 related to crypto asset investment contracts.
The plan would allow offerings of up to $5 million during a four-year period, and a second provision would permit offerings of up to $75 million during each 12-month period. This move drew criticism from accounting columnist Francine McKenna, who accused the SEC of 'subverting the legislative process' by proposing rules that were previously delayed in voting on the crypto-friendly Clarity Act.
Meanwhile, the Financial Accounting Standards Board (FASB) published proposed new accounting standards that would treat certain digital assets as cash equivalents. This guidance is set to undergo a public comment period ending November 19.