SEC Proposes Reg Crypto to Support Digital Assets Offerings

The U.S. Securities and Exchange Commission (SEC) is set to propose its first formal rule for crypto businesses, dubbed 'Regulation Crypto.' This move follows a lengthy series of policy statements from SEC Chairman Paul Atkins aimed at clarifying the agency's regulatory position on digital assets.

According to TD Cowen analyst Jaret Seiberg, this proposal represents the start of several rulemakings that will provide regulatory certainty for crypto assets. The Senate's failure to advance the Digital Asset Market Clarity Act has created a need for more durable rules.

The proposed Reg Crypto would establish a tailored offering regime for certain investment contracts and give crypto firms a path to raise capital without triggering SEC registration requirements. Businesses would also be provided with an exit path for getting clear of the agency's jurisdiction when they're not engaged in hands-on management of projects anymore.