SEC Proposes Rule Exempting Small Token Sales, Regulators Press On

Regulators are moving forward on new guidelines for using crypto tokens to raise capital, regardless of whether the Clarity Act passes in Congress.

The Securities and Exchange Commission (SEC) has proposed a rule that would exempt token sales of up to $5 million over four years from registration under the Securities Act of 1933.

The new rule also includes a provision that would allow tokens to shed their status as securities if their issuer ends managerial work related to the token.

SEC Chairman Paul Atkins has stated that actual legislation is still necessary for creating durable rules, but the proposed regulations can continue to be in force after the chairperson who wrote them departs the agency.