SEC Proposes Rules Allowing Crypto Projects to Raise Capital Without Registration
The Securities and Exchange Commission (SEC) is set to propose new rules that would allow cryptocurrency projects to raise capital without registering as securities. This move comes after the Senate failed to advance the Digital Asset Market Clarity Act, which aimed to establish a legal foundation for the US crypto market structure.
According to the SEC's Sunshine Act notice, the proposed framework would provide a tailored approach for digital-asset offerings, exempting certain projects from securities registration. This exemption would allow developers to raise capital without triggering registration requirements as long as they stay hands-off afterward.
The framework is expected to include an exit clause that would allow founders to decentralize and leave the project once they are no longer actively involved in its management. This would essentially provide an escape hatch for crypto projects, allowing them to operate outside of SEC oversight once they reach a certain level of decentralization.
The proposal is seen as a response to the stalled Clarity Act, which had aimed to provide regulatory clarity for the crypto industry. The SEC's rulemaking is expected to be more durable than staff statements issued earlier this year, which provided guidance on specific issues such as cryptocurrency staking and mining but did not have long-term binding effect.