SEC Proposes Rules for Crypto Tokens Considered Securities
The US Securities and Exchange Commission (SEC) has proposed rules for crypto tokens that are considered securities, aiming to provide clarity in the industry. According to SEC Chair Gary Gensler's predecessor, Gary Atkins, the previous SEC forced many startups offshore with its handling of the crypto sector.
The new rule proposal, Regulation Crypto Assets, is an attempt to address what happens when a token is caught by securities laws and when that ends. It also provides two fundraising exemptions, one based on a variation of the Regulation A exemption.
The SEC's move comes after it provided an interpretation in March, which was largely based on this new rulemaking. The rules are necessary because of the delay in the progress of the CLARITY Act, and they will not protect issuers from third-party litigation.