SEC Proposes Clear Framework for Crypto Asset Regulation
The Securities and Exchange Commission (SEC) has proposed new rules to regulate crypto assets. The proposal, titled 'Regulation Crypto Assets,' aims to provide a clear framework for certain investment contracts involving crypto assets.
The SEC's Chairman, Paul S. Atkins, said the proposal seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under federal securities laws. This includes two exemptions from registration requirements: one for offerings up to $5 million during a four-year period and another for offerings up to $75 million per year.
The proposed rules also include a conditional safe harbor from the term 'investment contract' in the definitions of 'security.' If conditions are met, a crypto asset would be deemed not subject to an investment contract. Additionally, the proposal preempts state securities law registration and qualification requirements for certain offers and sales of securities.
The public comment period will remain open for 60 days following publication in the Federal Register.