SEC proposes new crypto rules in absence of CLARITY Act
The proposed rules from the US securities regulator would provide companies with a safe harbor from tokens being treated as “investment contracts” and certain exemptions for token issuance.
The US Securities and Exchange Commission (SEC) has proposed new rules that could significantly impact the cryptocurrency industry, following the failure of Congress to pass a market structure bill before recessing for a month. The SEC's proposed rules aim to provide a clear framework for crypto assets while allowing entities to raise capital and preserve investor protections.
Despite the absence of an "innovation exemption" for crypto-based stocks, the proposed rules include exemptions for token issuers to raise up to $5 million in tokens over a four-year period and up to $75 million in a 12-month period. Furthermore, cryptocurrencies would be exempted from being treated as "investment contracts," offering a safe harbor to token issuers.
These rules, however, come with ongoing reporting requirements for token issuers. A 60-day public comment period will follow the publication of the proposal in the Federal Register. The SEC Chair, Paul Atkins, emphasized the importance of legislation in creating durable rules to protect ongoing crypto regulation efforts, asserting that the SEC would continue to support Congress in delivering the CLARITY Act until its anticipated approval by President Trump.
The announcement of the SEC's proposed rules occurred before a scheduled meeting of the US Commodity Futures Trading Commission (CFTC) on crypto, AI, and prediction markets, where the commodities regulator planned to address regulatory action areas that could complement future congressional legislation.
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