SEC Unveils New Crypto Rules with Lighter Regulatory Hurdles
The US Securities and Exchange Commission (SEC) has proposed new rules for the crypto industry, aiming to provide clarity and reduce regulatory hurdles. The 'Regulation Crypto Assets' proposal would exempt certain issuers from registering their offerings with the SEC, allowing them to raise capital more easily.
The plan includes two new exemptions: a 'startup exemption' that lets an issuer raise up to $5 million over four years without registration, and a 'fundraising exemption' that permits raises of up to $75 million within any 12-month period. Issuers would still need to provide investors with narrative disclosures.
The proposal also sets out a conditional safe harbour that could eventually place certain tokens outside the definition of a security, once an issuer has finished or abandoned its managerial efforts.