SEC Proposes Tailored Rules for Crypto Assets

The U.S. Securities and Exchange Commission (SEC) has proposed a new regulatory framework for crypto assets, aiming to provide 'clear pathways' for entrepreneurs to raise capital under federal securities laws.

The proposal would exempt certain crypto companies and offerings from U.S. securities rules, making it easier for them to issue tokens and raise funds. The SEC's Trump-appointed chair, Paul Atkins, stated that the agency seeks to give crypto asset market participants 'clear pathways' to raise capital under federal securities laws.

The proposal includes a one-time exemption allowing crypto companies to issue up to $5 million in tokens during a four-year period and offerings of up to $75 million over 12 months. Token issuers would still need to disclose certain information to investors, meeting regular reporting requirements.

Crypto companies have long argued that their tokens resemble commodities rather than securities, and should not be subject to SEC rules. If finalized as drafted, the proposal could benefit the industry by providing a clear regulatory framework.