SEC Proposes Regulation Crypto Framework for Digital Asset Fundraising
The U.S. Securities and Exchange Commission (SEC) is taking a significant step towards regulating the crypto industry with its proposed Regulation Crypto framework for digital asset fundraising.
The proposal, which opens a 60-day public comment period, outlines different compliance paths depending on how much capital a startup seeks to raise and how it plans to operate. This move marks a notable shift from the agency's previous staff statements, and industry experts are hailing it as broadly positive.
Cahill Gordon and Reindel LLP's Lewis Cohen views the proposal as reflecting significant work by the SEC, but emphasizes that the crypto industry still needs the Clarity Act to fully resolve its regulatory framework. President Donald Trump also urged Congress to pass the Clarity Act during a press conference with major crypto and traditional financial services executives.
The CFTC's Chairman Mike Selig signaled readiness for separate rulemaking if legislation stalls, leaving the crypto sector facing parallel tracks through agency rulemaking and congressional legislation.