US securities regulator proposes long-awaited crypto rules

On August 18, the U.S. Securities and Exchange Commission (SEC) unveiled a proposed regulatory framework for crypto assets, marking a significant step under the Trump administration. This initiative aims to provide a tailored set of rules for the industry, which has long been advocating for such clarity.

The SEC's proposal seeks to exempt specific crypto companies and offerings from U.S. securities rules, thereby facilitating token issuance and capital raising for these entities. SEC Chairman Paul Atkins stated that the plan aims to offer crypto asset entrepreneurs and market participants clear pathways to raise capital under federal securities laws.

The proposal outlines a one-time exemption for issuing up to $5 million in crypto tokens over a four-year span. Additionally, it permits offerings of up to $75 million within each 12-month period, although issuers would still be required to provide financial statements and adhere to regular reporting obligations. Under these exemptions, token issuers must still disclose pertinent information to investors.

Moreover, the SEC's proposal introduces a safe harbor that would exempt certain crypto assets from being classified as investment contracts, provided specific conditions are met.