SEC Proposes Reg Crypto Framework for Digital Assets

The U.S. Securities and Exchange Commission (SEC) has proposed a new regulatory framework for digital assets, called Regulation Crypto Assets or Reg Crypto. The initiative aims to make it easier for companies to raise capital using crypto while protecting investors.

According to SEC Chair Paul Atkins, the regulator's original goal was to give entrepreneurs opportunities to innovate and create new products within certain guardrails. Updating the rules for digital assets is part of the Commission's strategy to modernize regulation and bring crypto innovation back to the U.S.

The proposal includes a startup exemption that would exempt offerings of up to $5 million from registration under the Securities Act of 1933 for four years, while anti-fraud requirements and certain disclosure obligations remain in effect. Additionally, there's a fundraising exemption allowing offerings of up to $75 million over a one-year period without full registration requirements.

The SEC had planned to consider the proposal on Friday but canceled the meeting due to an unforeseen scheduling issue.