SEC Proposes 'Regulation Crypto Assets' Framework with Exemptions up to $75 Million

The U.S. Securities and Exchange Commission (SEC) has proposed a new regulatory framework for digital assets, aiming to create a clear and fit-for-purpose framework for certain investment contracts involving crypto assets.

The proposal, formally titled 'Regulation Crypto Assets,' would allow token issuers to raise capital under federal securities laws while establishing clearer boundaries for when a crypto asset ceases to be an investment contract.

SEC Commissioner Hester M. Peirce described the current rules as 'inapt' and said that the new guidelines mark an important step toward putting clear, sensible, enforceable rules in place for crypto offerings.

The proposed framework includes two exemptions from Securities Act registration requirements: a one-time offering of up to $5 million over a four-year period, and larger offerings of up to $75 million in any 12-month period, subject to financial statement and ongoing reporting obligations.