U.S. SEC sets meeting to propose Reg Crypto to support certain digital assets offerings

The U.S. Securities and Exchange Commission is set to propose its inaugural formal rule aimed at establishing more stable regulations for crypto businesses through Regulation Crypto. This announcement came with the SEC's scheduled meeting on August 14, which will be held in order to open the proposal for public comment. The meeting, featuring the three-member commission, all of whom are Republicans, was announced with short notice.

The proposal of Regulation Crypto follows the Senate's inability to begin crucial votes on the Digital Asset Market Clarity Act, which sought to provide a legal framework for crypto market rules in the U.S. This proposal is anticipated to provide a regulated path for crypto firms to raise capital without triggering SEC registration requirements.

A separate path would also be granted to businesses to exit the agency's jurisdiction once they cease to manage the projects directly. This rulemaking process, expected to take several months, will be more difficult to reverse in the future compared to the agency's previous crypto policy statements. The SEC's other significant steps to support the U.S. crypto industry include its joint stance with the Commodity Futures Trading Commission on a taxonomy to classify various crypto assets and its work on tokenized securities.