SEC Proposes Major Crypto Regulation Rule with Two-Track Offerings

The U.S. Securities and Exchange Commission has made its first major foray into crypto regulation with a proposed rule that aims to clear a path for offering crypto securities without triggering certain regulatory demands.

The agency action is an opening step to establish 'Regulation Crypto Assets' as a permanent rule governing digital assets, particularly meaningful after Congress has fallen short in passing a crypto market structure law.

The proposal includes two tracks for crypto securities offerings: one for up to $5 million in a four-year period and another for up to $75 million in each one-year period. Issuers would be required to make certain narrative disclosures available to investors, as well as provide financial statements and submit to ongoing reporting requirements under the second exemption.

SEC Chairman Paul Atkins emphasized the importance of legislation in enacting 'future-proofed' rules, stating that 'legislation remains indispensable.'