US SEC Approves New Crypto Regulations Amid Rising BTC Price

On August 18th, the U.S. Securities and Exchange Commission (SEC) approved a new regulatory proposal called 'Crypto Asset Regulations'. This framework is seen as a major shift in the U.S. regulatory system, moving from a past approach of 'regulation by enforcement' to clear guidance towards legal compliance.

The 'Crypto Asset Regulations' include exemption clauses and new fundraising pathways that lower the threshold for startup crypto projects to raise funds and issue assets in the U.S. The proposal establishes two major securities registration exemption mechanisms: allowing compliant projects a one-time fundraising exemption of up to $5 million within 4 years, and allowing large-scale projects an issuance exemption of up to $75 million every 12 months.

SEC Chairman Paul Atkins stated that the new regulations establish a principles-based disclosure system while reducing duplicate and overlapping state securities regulation restrictions, attracting crypto companies back to the U.S. However, the market is still waiting for a stronger catalyst, the 'Clarity Act'.