SEC proposes new crypto asset regime as Clarity Act stalls
The U.S. Securities and Exchange Commission (SEC) has proposed a new regulatory regime aimed at making it easier to raise capital using digital assets. The initiative would exempt certain crypto asset offerings from some requirements under securities laws.
According to The Block, the SEC on Tuesday unveiled an initiative called Regulation Crypto Assets, or Reg Crypto. The Commission describes it as a “tailored offering regime” designed to help companies raise capital while protecting investors. The new framework is separate from the innovation exemption the regulator is developing for tokenized assets.
SEC Chair Paul Atkins said U.S. securities laws were originally designed to give entrepreneurs, within certain guardrails, opportunities to innovate and create new products. According to him, updating the rules for digital assets is an important part of the Commission’s strategy to modernize regulation and bring crypto innovation back to the U.S.
Why Reg Crypto is needed
Reg Crypto builds on the approach outlined by the SEC and the U.S. Commodity Futures Trading Commission (CFTC) in joint guidance published in March. At the time, the regulators clarified how federal securities laws apply to digital assets and related transactions, stating that most such assets are not securities in themselves.
One of the key elements of the new proposal is the so-called startup exemption. It would exempt offerings of up to $5 million from registration under the Securities Act of 1933 for four years. At the same time, anti-fraud requirements and certain disclosure obligations would remain in effect.
In addition, the SEC is proposing a separate fundraising exemption. It would allow offerings of up to $75 million over a one-year period without having to comply with the full set of standard registration requirements.
The proposal also includes a safe harbor mechanism. Under it, a digital asset could cease to be considered a security if certain conditions are met, including if the organization behind the project has fully ended the managerial efforts on which the asset’s development depends.
The SEC had been scheduled to consider the proposal on Friday, but the meeting was canceled at the last minute. A Commission spokesperson attributed the cancellation to an “unforeseen scheduling issue.”
Clarity Act faces delays
Progress on the Clarity Act in the U.S. Congress has stalled amid disagreements over key provisions of the bill. The main points of contention include stablecoin rewards, which have sparked a dispute between the banking sector and crypto companies, as well as questions related to potential conflicts of interest involving President Donald Trump.
A procedural vote on the bill is scheduled for mid-September, but the window for its passage is narrowing. As the November elections approach, lawmakers’ attention is increasingly shifting toward campaigning, raising the risk of further delays to the Clarity Act.
As a reminder, the Clarity Act is expected to be put to a vote on September 15.
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