The U.S. Securities and Exchange Commission has unveiled a proposed rule, “Regulation Crypto Assets,” designed to exempt certain digital asset offerings from securities law requirements, marking a significant shift in regulatory approach amid stalled legislative efforts. The rule introduces exemptions for startups and fundraising, alongside a safe harbour for digital assets meeting specific criteria, including ceasing all managerial efforts.
The proposal, announced on Tuesday, follows the cancellation of an SEC meeting last week due to an “unforeseen scheduling issue.” It aims to balance innovation with oversight, with exemptions allowing offerings up to $5 million for startups and $75 million for fundraising to avoid registration requirements for four and one year respectively. A safe harbour would apply to digital assets no longer classified as securities if they meet predefined conditions.
SEC Chair Paul Atkins highlighted the need for a regulatory framework to support entrepreneurship, stating Congress designed securities laws to “amplify opportunities within specific guardrails.” Commissioner Hester Peirce described the proposal as “one step on a long road toward a clear, sensible, enforceable regulatory framework for crypto.” The 60-day comment period for the rule is now open.
The move comes as broader legislative efforts, including the Clarity Act, face uncertainty. Procedural votes for the act are scheduled for mid-September, but disputes and timing pressures ahead of November elections have stalled progress. White House crypto adviser Patrick Witt noted imminent rulemaking from the CFTC and SEC, though the exact timing and outcome of the SEC’s proposal remain subject to public feedback and potential legislative developments.
Written by Steven Cook
Regulation Desk
