SEC Proposes Crypto Rules Allowing Up to $75 Million Token Issuance
The US Securities and Exchange Commission (SEC) has proposed a new regulatory framework for crypto assets, marking a major step towards giving the industry tailored rules it has long pushed for. The proposal would exempt certain crypto companies and offerings from US securities rules, making it easier for them to issue tokens and raise money.
Under the plan, token issuers would be allowed to issue up to $5 million in crypto tokens during a four-year period, with a one-time exemption. They could also offer up to $75 million in tokens during each 12-month period, provided they meet regular reporting requirements and disclose certain information to investors.
The SEC's proposal includes a safe harbor that would exclude a crypto asset from being deemed an investment contract if certain conditions are met. Chairman Paul Atkins said the plan 'seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws.'