Key facts
- The U.S. Securities and Exchange Commission plans to propose a new crypto rule as soon as July.
- The rule aims to exempt certain crypto activities from securities regulation.
- It will establish temporary exemptions for developers of crypto investment contracts and allow for fundraising.
- A safe harbor will be created for issuers stepping back from managerial efforts over a security.
- SEC Chairman Paul Atkins stated the goal is to support innovation and capital raising in the U.S. crypto market.
The U.S. Securities and Exchange Commission (SEC) is preparing to unveil its first significant rule aimed at the cryptocurrency industry, with a proposal expected as early as July. This initiative, referred to as "Regulation Crypto," is designed to offer temporary exemptions from securities registration requirements for developers of crypto investment contracts, facilitate a defined level of fundraising, and establish a safe harbor for issuers who are reducing their managerial involvement with a security.
SEC Chairman Paul Atkins, who first detailed these concepts in March, stated that the agency is embracing innovation to bring more crypto products onshore and create clear guidelines for capital raising and the trading of tokenized securities. This move by the SEC is seen as a positive development for the crypto industry, particularly as legislative progress on a comprehensive crypto market structure bill has been slow.
The proposed rule is listed on the SEC's updated agenda for July and is currently undergoing review by the White House Office of Information and Regulatory Affairs. If enacted, it would represent a major step in crypto-specific rulemaking under Atkins' leadership, offering more weight than previous staff statements and guidance. The SEC's agenda also includes other potential rules concerning asset custody and market structure for digital assets.