SEC Proposes Regulation Framework for Digital Asset Fundraising

The U.S. Securities and Exchange Commission (SEC) has proposed a new rulemaking framework for regulating fundraising activities by digital asset firms, dubbed 'Reg Crypto'. The proposal aims to provide clarity on how crypto companies can raise funds with tokens without violating SEC regulations.

In a press conference held last Wednesday, President Donald Trump urged Congress to pass the Clarity Act, which would help standardize regulations for the industry. SEC Chairman Paul Atkins and CFTC Chairman Mike Selig also spoke at the event, alongside major crypto and financial services executives.

Cohen, a partner at Cahill Gordon and Reindel LLP, praised the SEC's efforts, saying 'It goes a long way.' However, he noted that the industry still needs the Clarity Act to truly thrive. The CFTC is also preparing to begin working on rulemaking if the Clarity Act does not become law.