SEC Proposes New Rules for Crypto Asset Investment Contracts

The Securities and Exchange Commission (SEC) has proposed new rules for investment contracts involving crypto assets. The proposal, called Regulation Crypto Assets, aims to provide a federal regulatory framework for these assets.

Regulation Crypto Assets would establish exemptions for startups and fundraising, including a conditional investment contract safe harbor. It would also define 'qualified purchaser' to preempt state securities registration and qualification requirements.

The proposal follows interpretive guidance issued by the SEC and the Commodity Futures Trading Commission (CFTC) earlier this year, which set forth a token taxonomy.