US securities regulator proposes long-awaited crypto rules

The U.S. Securities and Exchange Commission (SEC) introduced a proposed regulatory framework for crypto assets on Tuesday, marking the first major step under President Donald Trump's administration to provide tailored rules for the industry. The SEC's proposal seeks to exempt certain crypto companies and offerings from U.S. securities rules, making it easier for crypto companies to issue tokens and raise capital.

SEC Chair Paul Atkins stated that the agency aims to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under federal securities laws. Trump, who has advocated for crypto regulations during his campaign and whose family has benefited from crypto endeavors, has prioritized reform during his second administration.

The SEC ended a crackdown on crypto last year, rescinding crypto accounting guidance and dismissing lawsuits against companies like Coinbase and Binance. If finalized, the proposal would allow crypto companies to issue up to $5 million in tokens over a four-year period and up to $75 million per 12-month period, while still requiring financial statements and regular reporting.

The SEC also introduced a safe harbor, excluding crypto assets from being classified as investment contracts under specific conditions. Industry leaders praised the proposal, stating it is a step towards the necessary rules for digital asset markets in the U.S. However, there are concerns that future administrations might overturn or tighten the SEC's rules.

The SEC's proposal will undergo a 60-day public comment period before publication in the U.S. Federal Register.