SEC Proposes Crypto Regulation Framework Amid Clarity Act Stalemate

Regulators are seeking to advance a new framework for using crypto tokens to raise capital.

This framework can exist independently of the Clarity Act, which is currently stalled in Congress.

The Securities and Exchange Commission (SEC) proposed its first permanent digital-asset rule on August 18, which would exempt token sales of up to $5 million over four years from registration under the Securities Act of 1933.

Additionally, the SEC proposed a similar exemption for token sales of up to $75 million a year, provided that the issuer provides financial statements and ongoing reporting.

SEC Chairman Paul Atkins emphasized that actual legislation is still necessary to create rules that are durable enough to last through future administrations.