US securities regulator proposes long-awaited crypto rules

On August 18, the U.S. Securities and Exchange Commission (SEC) unveiled a comprehensive regulatory framework for cryptocurrency assets, marking the first major step under President Donald Trump's administration to establish tailored rules for the industry. The SEC's proposal aims to exempt certain crypto companies and offerings from U.S. securities rules, simplifying the process for these entities to issue tokens and raise capital.

SEC Chair Paul Atkins emphasized the proposal's goal of providing clear pathways for crypto asset entrepreneurs and market participants to raise capital under federal securities laws. The plan introduces a one-time exemption for issuing up to $5 million in crypto tokens over a four-year period, and allows offerings of up to $75 million per 12-month period. However, issuers must still provide financial statements and adhere to regular reporting requirements. Both exemptions necessitate investor disclosure.

Additionally, the SEC's proposal includes a safe harbor that would exclude a crypto asset from being classified as an investment contract under specific conditions.