SEC Poised to Propose Regulation Crypto Framework

The Securities and Exchange Commission (SEC) is set to vote on August 14th to propose Regulation Crypto, a framework for token projects raising capital through investment contracts. The proposed regulation aims to create a tailored offering regime for certain investment contracts involving crypto assets.

The objective of Regulation Crypto is to allow developers to finance their networks without forcing every qualifying offering through the registration system designed for company shares, while retaining disclosure and anti-fraud obligations suited to the transaction.

SEC Chairman Paul Atkins first outlined Regulation Crypto as a package of exemptions for crypto assets sold as part of an investment contract. The proposal is expected to reduce two costs for issuers: uncertainty at launch and the risk that secondary trading remains under securities rules after a network operates without hands-on management.