US SEC proposes new rules for crypto assets

The U.S. Securities and Exchange Commission (SEC) has proposed a new regulatory framework for cryptocurrency assets, marking a major development under the Trump administration. This proposal would create tailored rules for the crypto industry, a long-standing demand from the sector. The SEC's chair, Paul Atkins, emphasized the proposal's aim to provide clear pathways for crypto companies and market participants to raise capital under federal securities laws.

Trump, who frequently mentioned crypto during his campaign and has personal investments in the sector, has been a strong advocate for regulatory reform in this area. Under his administration, the SEC has reversed previous crackdowns on the crypto industry, such as rescinding crypto accounting guidance and dismissing lawsuits against companies like Coinbase and Binance.

If the proposal is finalized, it would exempt certain crypto companies and offerings from U.S. securities rules, allowing them to raise up to $5 million in tokens over four years and up to $75 million per year. However, these issuers would still need to provide financial statements and adhere to regular reporting requirements. The proposal also includes a safe harbor that would exclude crypto assets from being considered investment contracts, provided certain conditions are met.

The Blockchain Association, represented by its CEO Summer Mersinger, welcomed the proposal, stating that it is a crucial step toward establishing fit-for-purpose rules for digital asset markets. Similarly, Cody Carbone, CEO of The Digital Chamber, praised the proposal and pledged support for its implementation. Despite this support, industry executives remain cautious, expressing concerns that future administrations may challenge or strengthen the SEC's proposed rules.

The SEC's proposal is open for public comment for 60 days following its publication in the U.S. Federal Register.