SEC Proposes Crypto Asset Offering Rules for US Markets

The US Securities and Exchange Commission (SEC) is proposing rules for crypto asset offerings in U.S. markets. The framework, called Regulation Crypto Assets, aims to create a tailored securities offering regime for certain investment contracts involving crypto assets.

The proposal includes two exemptions from Securities Act registration requirements. One exemption allows issuers to make one-time offerings of up to $5 million over four years, while the other permits recurring offerings of up to $75 million per 12 months.

Issuers would need to provide narrative disclosures for both exemptions, with the larger exemption also requiring financial statements and ongoing reporting. SEC Chairman Paul S. Atkins says the proposal aims to give crypto entrepreneurs and market participants clearer paths to raise capital under federal securities laws.