SEC to Unveil Major Crypto Initiatives on August 14

The U.S. Securities and Exchange Commission (SEC) is set to introduce two major initiatives for the crypto industry on August 14, according to Bloomberg.

The first initiative is a tailored offering regime for certain investment contracts involving crypto assets, which would exempt startups from registration requirements for up to four years and allow fundraising up to a defined amount in any 12-month period without registration.

Additionally, the SEC could release an 'innovation exemption' for tokenized stocks on August 14. This plan involves using blockchain technology to convert real-world assets into tradable tokens that represent ownership, making them accessible for 24/7 trading.

However, there are concerns about the potential risks associated with these initiatives, including the possibility of bad actors overseas exploiting loopholes in blockchain technology to avoid regulatory oversight. The new plan could have stricter curbs on such trading with additional anti-money-laundering (AML) protections, such as requiring platforms trading tokenized stocks to be U.S. entities.