Crypto▲ Bullish
SEC Sets August 14 Vote on Reg Crypto Proposal for Token Issuance
The SEC will vote August 14 on a Reg Crypto proposal creating a structured path for token issuance. The rule follows the Senate's failure to advance the Clarity Act and would give firms a registration exemption and an exit path from SEC oversight.
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The Securities and Exchange Commission plans to propose its first formal rule creating a structured path for crypto token issuance under a framework called Reg Crypto.
Chairman Paul Atkins scheduled an August 14 commission meeting – all three Republican members will vote – to open the proposal for public comment, the agency said Monday. The notice came on unusually short notice for a meeting that has been on the agency's agenda for months.
The rule would establish "a tailored offering regime for certain investment contracts," according to the SEC's description. It follows last week's Senate failure to advance the Digital Asset Market Clarity Act, the main legislative effort to give crypto market rules a legal foundation.
"We view this as the first of several rulemakings the SEC will undertake to provide regulatory certainty for crypto assets after the Senate failed before the August recess to advance the Clarity Act on crypto market structure," TD Cowen analyst Jaret Seiberg wrote in a client note.
The proposal is expected to let crypto firms raise capital for projects without triggering full SEC registration requirements. Businesses would also get an exit path from agency oversight when they are no longer actively managing those projects.