- The SEC proposes the first crypto-specific rulebook under Trump, with two capital-raising exemptions and tiered disclosures.
- Exemptions allow US$5 million (AU$7.05 million) over four years, or US$75 million (AU$105.75 million) during a 12-month period.
- Safe harbour could exempt tokens from SEC oversight with a 60-day comment period now open.
The US Securities and Exchange Commission has proposed a broad crypto regulatory framework that would make it easier for certain digital-asset companies to issue tokens and raise capital while operating under federal securities laws.
The proposal marks the first major step under President Donald Trump’s administration towards giving the crypto industry rules specifically adapted to its activities, according to the report.
At the centre of the framework are two proposed exemptions covering different fundraising levels, with one allowing eligible companies to offer up to US$5 million (AU$7.05 million) in tokens over four years and another permitting offerings of as much as US$75 million (AU$105.75 million) during a 12-month period.
Both pathways would come with disclosure obligations for investors, while companies relying on the larger exemption would also have to provide financial statements and meet reporting requirements.
Related: SEC Eyes Sweeping Crypto Rule Overhaul Covering Tokens, Trading, and Broker-Dealers
When a Token Stops Being a Security
A separate safe harbour would establish conditions under which a crypto asset could cease to be regarded as being tied to an investment contract, potentially removing it from the SEC’s authority when those requirements are met.
The proposed rules are designed specifically for non-security crypto assets that are subject to investment contracts and include conditions intended to preserve investor protections. The SEC said the framework is part of its effort to develop rules suited to crypto markets and encourage capital formation and innovation in the US.
The proposal arrives while legislation aimed at establishing a broader cryptocurrency market framework remains stalled in Congress.
The SEC’s initiative builds on guidance issued jointly with the Commodity Futures Trading Commission in March concerning the application of federal securities laws to digital assets and related transactions.
Regulation Crypto Assets will now enter a 60-day public comment period, according to the report.
Related: Ripple: Sept. 15 Could Be a Make-or-Break Moment for the Crypto Clarity Act
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