SEC Proposes Exemptions for Digital Asset Offerings

The Securities and Exchange Commission (SEC) has unveiled a proposal to exempt certain digital asset offerings from securities registration statements. The exemption is meant to help companies at the startup and fundraising stages of their growth, according to SEC Chairman Paul Atkins.

Under the proposed rule, offerings up to $5 million would be exempted for four years, while those up to $75 million would be exempt for 12 months. Issuers under the second exemption would have to provide financial statements and meet ongoing reporting requirements.

The SEC had planned to unveil its so-called 'Regulation Crypto' proposal last week but cancelled the meeting. The agency was also expected to issue an innovation exemption for trading digital versions of securities, but it is unclear if this will still happen in the coming days or weeks.