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SEC Proposes Crypto Rules as Clarity Act Vote Slips
The SEC's Regulation Crypto Assets carves out two exemptions for token issuers, with a conditional safe harbor, as the Clarity Act vote slips to September.
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The Securities and Exchange Commission proposed its own framework for crypto asset offerings Tuesday, moving ahead while a bipartisan bill stalls in Congress.
The regulator called it "Regulation Crypto Assets," a tailored offering regime Chairman Paul Atkins said would let token issuers raise money in the U.S. without violating securities laws.
The proposal carves out two exemptions from registration under the Securities Act of 1933. The first is a one-time exemption allowing issuers to raise up to $5 million in crypto over four years. The second permits up to $75 million in any 12-month period, with financial statements and ongoing reporting obligations. Both require narrative disclosures – written explainers for investors outlining a business and its risks.
The rules also include a conditional safe harbor. Once an issuer completes, or permanently abandons, the managerial work it promised, its token would no longer be deemed subject to an investment contract. That would place it outside the definition of a "security."