Key facts
- The SEC has proposed new rules for crypto assets.
- The proposals include a safe harbor from 'investment contract' classification.
- The proposals include exemptions for token issuance.
- Congress failed to pass the Digital Asset Market Clarity Act.
- The SEC is preparing to take direct control of the Consolidated Audit Trail (CAT) database.
- The CAT database is used for market surveillance.
- SEC Chairman Paul Atkins directed staff to draft plans for the CAT transition.
- Oversight of the CAT would shift from FINRA to the SEC.
- The CFTC is soliciting public comments on proposed rule changes.
- The CFTC's proposed changes affect commodity pool operators and commodity trading advisors.
- The CFTC revisions focus on investor eligibility, registration exemptions, and reporting requirements.
The U.S. Securities and Exchange Commission (SEC) has put forth new proposals for crypto assets, aiming to establish a safe harbor from classification as 'investment contracts' and offering exemptions for token issuance. These regulatory moves occur against a backdrop of congressional inaction, specifically the failure to pass the Digital Asset Market Clarity Act. In parallel, the SEC is making preparations to assume direct oversight of the Consolidated Audit Trail (CAT), a substantial database utilized for market surveillance. SEC Chairman Paul Atkins has instructed his staff to develop plans for this transition, which will transfer the CAT's oversight from FINRA to the SEC. Separately, the Commodity Futures Trading Commission (CFTC) is engaging the public for comments on proposed revisions to its rules governing commodity pool operators and commodity trading advisors. These proposed changes are intended to refine aspects such as investor eligibility criteria, the availability of registration exemptions, and the reporting obligations for fund managers operating within the commodity markets.