SEC Publishes Crypto Asset Regulation Proposal with Key Exemptions

The US Securities and Exchange Commission (SEC) has published its proposed 'Regulation Crypto Assets' framework in the Federal Register, starting a 60-day public comment period. The proposal aims to create possible exemptions for covered digital asset investment contracts, including a one-time startup exemption of up to $5 million and a 12-month fundraising exemption of up to $75 million.

The proposed exemptions are seen as significant if the proposal survives the rulemaking process. However, it's essential to note that these rules are not final and may change after public comments.

The Federal Register publication marks the beginning of the formal comment window, which will allow issuers, exchanges, developers, investors, academics, trade groups, lawyers, and consumer advocates to respond to the proposal.