SEC Proposes Regulation Crypto Assets Framework

The U.S. Securities and Exchange Commission (SEC) is moving forward with its proposal for Regulation Crypto Assets, a bespoke offering regime under the Securities Act for investment contracts involving crypto assets. This comes after the Senate failed to pass the Clarity Act before the August recess.

According to sources, SEC Chairman Paul Atkins has ranked crypto rulemaking as a top priority for the agency. The commission will vote on whether to approve the publication of the proposal for a public comment period, marking the start of the rulemaking process for implementing more permanent rules for digital asset firms.

The Regulation Crypto proposal is expected to provide an exemption for qualifying crypto projects to raise capital without automatically triggering SEC registration requirements. It may also describe situations where its securities jurisdiction no longer applies to projects once the managerial efforts involved in an investment contract have been exhausted.