The U.S. Securities and Exchange Commission has proposed a new rule, Regulation Crypto Assets, aimed at creating a compliance path for certain digital asset offerings. According to The Block, the proposal sets out a tailored issuance framework designed to support capital formation while protecting investors. It includes a “startup exemption” for offerings of up to $5 million over four years without registration under the Securities Act of 1933, and a separate “fundraising exemption” for offerings of up to $75 million over one year. The proposal also contains a safe harbor provision under which a digital asset would no longer be treated as a security if specified conditions are met and “all managerial efforts” have ceased. The SEC will open a 60-day public comment period. The proposal comes days after the agency canceled a related meeting last Friday because of “unexpected scheduling issues.” SEC Commissioner Hester Peirce said the move marks a step on what she described as the long road toward a clear, workable, and enforceable crypto regulatory framework, as lawmakers in Washington remain stalled on the Clarity Act.
The U.S. Securities and Exchange Commission has proposed a new rule called Regulation Crypto Assets, laying out a compliance route for investments involving digital assets and allowing certain offerings to qualify for exemptions from securities law requirements.
According to The Block, the rule was described as a “tailored issuance regime” intended to help projects raise capital while protecting investors, and distinct from an innovation exemption.
Two offering exemptions in the proposal
One part of the proposal is a “startup exemption,” which would allow offerings of up to $5 million to be exempt from the registration requirements of the Securities Act of 1933 for a period of four years.
A separate “fundraising exemption” would allow offerings of up to $75 million to be exempt for one year.
Safe harbor provision and comment period
The proposal also includes a safe harbor provision. Under it, a digital asset would no longer be considered a security after meeting specified conditions and once “all managerial efforts” have ceased.
The SEC has set a 60-day public comment period for the proposal.
Filed days after a canceled SEC meeting
The proposal was put forward days after the SEC canceled a related meeting last Friday because of “unexpected scheduling issues.”
SEC Commissioner Hester Peirce said, “This proposal is one step on the long road to a clear, sensible, and enforceable crypto regulatory framework.”
The move comes as lawmakers in Washington remain stalled on legislation tied to the Clarity Act.
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