SEC Proposes New Rules for Cryptocurrency Offerings
The US Securities and Exchange Commission (SEC) has proposed new rules for cryptocurrency offerings, which would clarify how securities laws apply to digital asset sales. The proposal, titled Regulation Crypto Assets, aims to support secondary trading and provide clarity for crypto markets while Congress pursues a lasting regulatory framework.
The proposed rules include two exemptions from registration requirements: one-time exempt offering of up to $5 million during a four-year period, and tiered fundraising exemption with limits of up to $20 million and $75 million in 12-month periods. Issuers would need to make principles-based disclosures for both exemptions.
The proposal also introduces the concept of a 'qualified purchaser,' which would preempt state authority from applying securities laws and qualification requirements for offers and sales of covered investment contracts, including secondary transactions. The SEC says this would address long-standing barriers to responsible capital formation and innovation within domestic crypto asset markets.