SEC Proposes New Crypto Regulation with Token Issuance Exemptions

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The U.S. Securities and Exchange Commission (SEC) has proposed new cryptocurrency regulations, aligning with global initiatives such as MiCA (Markets in Crypto-Assets Regulation). Under the framework, qualified token issuers may avoid classification as investment contracts by limiting token sales to $5 million over four years or $75 million within 12 months, subject to reporting requirements. The proposal will undergo a 60-day public comment period following publication in the Federal Register. SEC Chair Paul Atkins emphasized the need for legislative action to address risks, including those related to Countering the Financing of Terrorism (CFT).

ChainThink reports that on August 19, according to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) proposed new regulations for crypto assets, aiming to establish a clearer regulatory framework for specific crypto investment contracts amid Congress's failure to pass the CLARITY Act.

Under the proposal, the new rules would provide a safe harbor allowing eligible token offerings to avoid being classified as "investment contracts."

Crypto companies may issue up to $5 million in tokens over a four-year period, or up to $75 million in tokens within a 12-month period, under an exemption. Issuers must file financial statements and comply with ongoing reporting requirements.

After the proposal is published in the Federal Register, it will enter a 60-day public comment period. SEC Chairman Paul Atkins stated that legislation remains essential for establishing "future-proof" cryptocurrency regulations.

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