SEC Unveils Regulation Crypto Assets Proposal

The US Securities and Exchange Commission (SEC) has proposed Regulation Crypto Assets, also known as Reg Crypto, which is set to revolutionize the way crypto assets are issued in the country. The proposal was released on August 18 and would create a lawful path for certain tokens to be sold to the public without needing a registered offering.

Reg Crypto would allow issuers to raise up to $5 million over four years with public filings at the beginning and end of the period, or up to $20 million or $75 million over 12 months with ongoing reporting and SEC qualification. The proposal also includes a one-time startup exemption for raising funds without registration.

The rule would apply only to tokens that are not themselves securities but were offered or sold as part of an investment contract. Tokenized stocks and bonds, and arrangements that bundle a token with equity or other securities, sit outside the framework by design.