SEC Proposes Regulation Crypto Assets with New Exemptions

The US Securities and Exchange Commission (SEC) has proposed new rules to regulate crypto assets. The proposal, titled Regulation Crypto Assets, aims to create a tailored securities-offering regime for certain investment contracts involving crypto assets.

The SEC announced the proposal on August 18, following its March interpretation of how federal securities laws apply to certain crypto assets and related transactions.

The proposed rules include two exemptions: one for offerings of up to $5 million during a four-year period, and another for offerings of up to $75 million in each 12-month period. Under both exemptions, issuers would need to provide principles-based narrative disclosures.

For the larger exemption, issuers would also need to provide financial statements and comply with ongoing reporting requirements.