SEC Proposes Rule for Token Sales Amid Clarity Act Delay

Regulators are pushing forward with a new framework for using crypto tokens to raise capital, despite the Clarity Act being put on hold in Congress.

The proposed rule by the Securities and Exchange Commission (SEC) would exempt token sales of up to $5 million over four years from registration under the Securities Act of 1933, as well as allowing issuers to provide financial statements and audited reports above certain capital-raising thresholds.

While the rule is not a law, companies are likely to comply with it. SEC Chairman Paul Atkins emphasized that actual legislation remains indispensable for creating durable rules.