U.S. securities regulator proposes long-awaited new rules for crypto assets

The U.S. Securities and Exchange Commission on Tuesday proposed a new regulatory framework for crypto assets, the first major step under U.S. President Donald Trump’s administration to give the industry the tailored rules it has long pushed for.

The SEC’s proposal would exempt certain crypto companies and offerings from U.S. securities rules, which should make it easier for crypto companies to issue tokens and raise money. The SEC’s plan “seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws,” Chairman Paul Atkins said in a statement.

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It would allow a one-time exemption to issue up to US$5-million in crypto tokens during a four-year period. It would also allow offerings of up to US$75-million during each 12-month period, though issuers would still have to provide financial statements and meet regular reporting requirements. Under both exemptions, token issuers would still need to disclose certain information to investors.

The SEC’s proposal also includes a safe harbour that would exclude a crypto asset from being deemed an investment contract, if certain conditions are met.