SEC Unveils Regulation Crypto Assets Framework

The US Securities and Exchange Commission (SEC) has proposed a new regulatory framework for digital assets called 'Regulation Crypto Assets.' The proposal offers two paths to raise capital without full securities registration: a startup exemption allowing token offerings of up to $5 million over four years, or an annual exemption of up to $75 million with financial statements and ongoing disclosure reports.

The SEC's move comes after the cancellation of a meeting on August 14 that was expected to introduce similar measures. The proposal includes principles-based narrative disclosures for investors and continues to apply federal anti-fraud and anti-manipulation rules under both tracks.

SEC Chair Paul Atkins said the proposal is designed to let crypto innovation grow within the United States, while Commissioner Hester Peirce acknowledged that it would not cover every type of crypto project. The public comment period runs for 60 days.