SEC Proposes Historic Regulation to Make US Crypto Capital

The Securities and Exchange Commission (SEC) has proposed a regulation called Regulation Crypto Assets, which could reshape the US crypto market. SEC Chairman Paul Atkins described this as the agency's 'most historic step yet' towards making the US the 'Crypto Capital of the World.'

Atkins stated that the proposal aims to bring innovation and capital back onshore by providing new exemptions and relaxing time limits on certain existing exemptions. He emphasized that American investors can now send their money anywhere, and the SEC wants them to do it under US law.

The proposed regulation works alongside Congress, not instead of it, according to Atkins. The Senate is set to hold a cloture vote on September 15, which requires 60 votes for passage. If the bill passes, it would expand the role of the Commodity Futures Trading Commission (CFTC) in crypto markets and clarify the distinction between securities and commodities.

While the regulation could make operations more predictable for exchanges and issuers, reducing enforcement risk, some issues remain unresolved, particularly regarding decentralized finance (DeFi), stablecoins, and enforcement language. The next steps would include debate, amendment, a final Senate vote, House reconciliation, and the president's signature.