SEC proposes new crypto rules in absence of CLARITY Act
The SEC proposed new crypto rules after Congress failed to advance the CLARITY Act before recess. The framework would create a tailored securities offering regime for certain investment contracts involving crypto assets, aiming to let firms raise capital while preserving investor protections. It would not include the expected “innovation exemption” for crypto-based stocks. Under the proposal, crypto issuers could sell up to $5 million in tokens over four years and up to $75 million in a 12-month period, with a safe harbor from being treated as investment contracts. Issuers would need financial statements and ongoing reporting. Public comments will be open for 60 days after Federal Register publication. SEC Chair Paul Atkins said legislation is still needed for durable rules, while the CFTC also signaled it may act where it can complement future legislation.
