SEC Proposes Crypto Rules Easing Token Sales
The US Securities and Exchange Commission (SEC) has proposed a new regulatory framework for crypto assets, marking a significant step towards giving the industry tailored rules. The proposal would exempt certain crypto companies and offerings from US securities rules, making it easier for them to issue tokens and raise money.
The SEC's plan aims to provide clear pathways for crypto asset entrepreneurs and market participants to raise capital under federal securities laws. According to Paul Atkins, the SEC's chair, the agency seeks 'to give crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws.'
Crypto companies have long argued that their tokens resemble commodities rather than securities, and should not be subject to SEC rules. The proposal would allow a one-time exemption for crypto companies to issue up to $5 million in crypto tokens during a four-year period, as well as offer up to $75 million in each 12-month period.
The plan also includes a safe harbor that would exclude a crypto asset from being deemed an investment contract if certain conditions are met. Industry leaders have welcomed the proposal, with Summer Mersinger, CEO of the Blockchain Association, praising it as 'an important step toward clear, fit-for-purpose rules digital asset markets in the United States have needed for years.'