US securities regulator reveals long-awaited crypto rules

The US Securities and Exchange Commission (SEC) has proposed a new regulatory framework for cryptocurrencies, marking the first major step under the Trump administration to provide tailored rules for the industry. Chairman Paul Atkins stated that the proposal aims to give crypto asset entrepreneurs and market participants clear pathways to raise capital under federal securities laws.

The proposed framework would exempt certain crypto companies and offerings from US securities rules, making it easier for them to issue tokens and raise funds. Under the plan, a company could issue up to $5 million in crypto tokens during a four-year period without violating securities laws. Additionally, offerings up to $75 million per 12-month period would be allowed, provided the issuers provide financial statements and meet regular reporting requirements.

The proposal also includes a safe harbor that would exclude a crypto asset from being considered an investment contract, provided certain conditions are met. This measure seeks to clarify the regulatory status of certain cryptocurrencies and alleviate some of the uncertainty surrounding them.

The regulatory proposal comes in the wake of a conditional approval granted by the Office of the Comptroller of the Currency (OCC) to a bank charter application linked to Trump's crypto venture, World Liberty Financial. The conditional approval, if ultimately granted, would allow the company to manage and hold assets on behalf of customers and settle payments more efficiently.

The OCC's decision highlights the Trump administration's favorable stance towards the cryptocurrency industry, which has encouraged crypto companies to seek such charters to expand their operations and attract major institutional clients.