SEC Unveils Regulation Crypto Assets to Unlock Billions in Digital Asset Capital

The US Securities and Exchange Commission (SEC) has proposed new rules for digital asset issuers to raise capital under federal securities law. The proposal, named Regulation Crypto Assets, introduces two exemptions from registration requirements under the Securities Act of 1933.

The first exemption allows issuers to raise up to $5 million through a one-time offering over a four-year period. The second exemption permits repeated raises of up to $75 million in any 12-month window. Issuers relying on either route would need to provide investors with narrative disclosures, while those using the larger exemption would face additional obligations.

The rules also introduce a conditional safe harbor that would remove certain crypto assets from the definition of 'security' under federal securities law. To qualify, specific conditions must be met, including providing financial statement disclosure and ongoing reporting.

SEC chairman Paul S. Atkins said, 'As we continue the Commission's efforts to provide clarity for crypto markets, Regulation Crypto Assets seeks to provide clear pathways to raise capital under federal securities laws.'