The U.S. Securities and Exchange Commission has proposed a new regulatory framework for crypto assets that would create exemptions for certain token offerings and establish a safe harbor for qualifying digital assets. The proposal comes as broader cryptocurrency legislation remains stalled in Congress, increasing the importance of the SEC's regulatory approach.
The U.S. Securities and Exchange Commission has proposed a new regulatory framework for crypto assets, marking a major step by the Trump administration toward establishing tailored rules for the digital asset industry.
The proposal, announced Tuesday, would create a securities offering regime for certain investment contracts involving crypto assets and provide what SEC Chairman Paul Atkins described as clearer pathways for crypto entrepreneurs and market participants to raise capital under federal securities laws.
Under the proposed exemptions, eligible crypto companies could issue up to $5 million in tokens over a four-year period without registering the offering under the full securities regime. A separate exemption would permit offerings of up to $75 million during any 12-month period, although issuers would still face financial-statement, reporting and disclosure requirements.
The SEC proposal would also establish a safe harbor under which certain crypto assets could avoid being classified as investment contracts if specified conditions are satisfied. The agency said the framework is intended to provide regulatory clarity while maintaining investor protections.
The proposal represents a shift in the SEC's approach to the crypto industry under Atkins, who was appointed chairman during President Donald Trump's second administration. The agency has moved toward prospective rulemaking and clearer classifications for digital assets following years of enforcement actions involving major cryptocurrency companies.
The SEC's move also comes as efforts in Congress to establish comprehensive cryptocurrency legislation have stalled. Reuters reported Tuesday that the lack of congressional action has pushed the administration's financial regulators to take a larger role in developing the industry's regulatory framework.
That could provide crypto companies with greater clarity in the near term, but industry participants remain concerned about the durability of rules established through regulatory action rather than legislation. Future administrations could potentially change the SEC's approach, Reuters reported.
The proposal will now enter a 60-day public comment period after publication in the Federal Register, giving crypto companies, investors and other market participants an opportunity to respond before the SEC considers final rules.
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