SEC Publishes Crypto Rule with October 20 Comment Deadline

The SEC's proposed rule for crypto assets has hit the Federal Register and comments are now open. The deadline for submitting comments is October 20, which falls exactly sixty days after publication on August 21. This marks a significant development in the regulatory landscape for cryptocurrencies.

The proposed rule creates two exemptions from registration requirements: the startup exemption, up to $5 million across four years, and the fundraising exemption, up to $75 million in each 12-month period. It also includes a conditional safe harbor from the term 'investment contract' in the definitions of 'security' under both the 1933 and 1934 Acts.

It's essential to note that this is a proposed rule, not law, and nothing becomes available to issuers until after the Commission adopts a final rule. The comment period serves as an opportunity for stakeholders to provide input, but the Commission is not obligated to agree with any comments.