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SEC Releases Proposed Reg Crypto Rules for Crypto Investment Contracts
The SEC's proposed rules offer exemptions for up to $5M and $75M offerings and a safe harbor from the definition of an investment contract.
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The U.S. Securities and Exchange Commission released a proposed regulatory framework Wednesday for certain crypto investment contracts. The proposal, named Regulation Crypto Assets, would create exemptions from securities registration and a conditional safe harbor from the definition of an investment contract under the Securities Act of 1933 and the Securities Exchange Act of 1934.
The SEC detailed two exemptions in a press release. The first would allow offerings of up to $5 million over a four-year period. The second would permit offerings of up to $75 million in any 12-month period. Under both, issuers would need to make principles-based narrative disclosures available to investors. Issuers using the larger exemption would also have to provide financial statements and meet ongoing reporting requirements, the SEC said.