US securities regulator proposes long-awaited crypto rules

The US Securities and Exchange Commission (SEC) has proposed a new regulatory framework for crypto assets, aiming to provide tailored rules for the industry. This is the first major step under US President Donald Trump's administration to give the crypto sector the rules it has long sought. The SEC's proposal would exempt certain crypto companies and offerings from US securities rules, easing their ability to issue tokens and raise capital.

SEC Chair Paul Atkins stated that the agency seeks to provide crypto asset entrepreneurs with clear pathways to raise funds under federal securities laws. Under the proposal, crypto companies could issue up to $5 million in crypto tokens over a four-year period, with an additional $75 million allowed each year. Issuers would still need to provide financial statements and meet regular reporting requirements.

The proposal also includes a safe harbor to exclude a crypto asset from being deemed an investment contract under certain conditions. Industry groups praised the proposal, with the Blockchain Association's CEO stating it is an important step toward clear, fit-for-purpose rules. However, some executives worry that future administrations may seek to overturn or strengthen the SEC's rules. The proposal is open for public comment for 60 days after publication in the US Federal Register.