SEC Proposes Crypto Rulebook Amid Stalled Clarity Act
The Securities and Exchange Commission has proposed its own framework for crypto asset offerings in the US. The regulator unveiled 'Regulation Crypto Assets' on Tuesday, which will allow token issuers to raise money without falling foul of securities laws.
The proposal carves out two exemptions from registration under the Securities Act of 1933. The first is a one-time exemption allowing issuers to raise up to $5 million in crypto over four years. The second permits up to $75 million in any 12-month period, but comes with financial statements and ongoing reporting obligations.
Both exemptions require issuers to make narrative disclosures available, outlining their business and risks. The rules also dangle a conditional safe harbor, which would allow tokens that have completed or abandoned managerial work to be exempt from securities laws.