SEC Steps In on Crypto Regulation Amid Stalled Clarity Act

The SEC has proposed its first permanent digital-asset rule to govern the crypto industry. This move comes as Congress considers the Clarity Act, a bill that aims to provide regulatory clarity for cryptocurrency.

The proposed rule would exempt token sales of up to $5 million over four years and $75 million per year from registration under the Securities Act of 1933. A token would also be entitled to shed its status as a security if its issuer ended any managerial work related to the token.

SEC Chairman Paul Atkins has stated that actual legislation remains indispensable for creating durable rules. He emphasized that regulatory clarity is crucial for financial institutions to underwrite legal risks of crypto investments, which could lead to significantly more inflows into these assets over time.