SEC Proposes Crypto-Specific Rules for Token Issuances

The US Securities and Exchange Commission has proposed a tailored regulatory framework for the virtual asset industry. The centerpiece of this proposal is an exemption from securities registration requirements for crypto companies that meet certain conditions when issuing tokens to raise capital.

The move accelerates the pro-virtual-asset policy trajectory that has defined the Donald Trump administration since it took office, coming as congressional debate over legislation to govern the structure of the virtual asset market has stalled.

Crypto companies would gain access to distinct registration-exemption pathways depending on the scale and method of their fundraising. The first pathway is a 'startup exemption' for early-stage projects that meet certain requirements and issue tokens to raise up to $5 million over a period of up to four years.