SEC Proposes Regulation of Crypto Assets with Conditional Safe Harbor

The US Securities and Exchange Commission (SEC) has proposed new regulations for crypto assets. The proposed rule, known as Regulation Crypto Assets, would allow certain issuers to raise up to $5 million over four years or $75 million annually without registration. This conditional safe harbor would be available once the issuer's managerial efforts end.

The SEC aims to reshape US crypto fundraising with this proposal, which also preempts select state rules. The plan now faces a 60-day comment period as part of ongoing SEC Regulation Crypto Assets proposal history and previous reviews of SEC safe harbor rules for crypto assets.