SEC Proposes Crypto Regulation Framework Amid Congressional Stalemate

The U.S. Securities and Exchange Commission (SEC) has proposed a new framework for regulating digital assets, dubbed 'Regulation Crypto Assets.' This move comes as Congress stalls on passing comprehensive legislation to govern cryptocurrencies.

The proposal includes exemptions for startups, allowing them to raise up to $5 million in funding over four years without registering with the SEC. Additionally, there's a fundraising exemption of up to $75 million for one year. A safe harbor provision would permit digital assets to shed their security status if certain conditions are met and managerial efforts cease.

The move has been seen as a way to support entrepreneurship and modernize the rule book while protecting investors. SEC Chair Paul Atkins stated that the agency is advancing a framework meant to achieve these goals. The proposal arrives after the SEC canceled a planned meeting on the rule due to scheduling issues, with comments due within 60 days.