On August 18, local time, the US Securities and Exchange Commission announced its intention to introduce “Crypto Asset Regulation Rules” to establish a special securities issuance supervision framework for some investment contracts involving crypto assets. According to the SEC, the proposal aims to provide a more clear path for financing and innovation in the crypto asset market while retaining investor protections under federal securities laws. According to the proposal, the SEC plans to establish two securities registration exemptions for some investment contracts involving crypto assets: one allows issuers to issue no more than US$5 million in total within 4 years, and the other allows issuers to issue no more than US$75 million every 12 months. Both types of issuance must provide investors with descriptive disclosure in principle, and issuers subject to the $75 million exemption must also provide financial statements and fulfill ongoing reporting obligations. Furthermore, the SEC plans to establish a conditional “safe harbor”, and eligible crypto assets will not be treated as “investment contracts” under the relevant securities laws. The proposal is open for public comment for 60 days.

On August 18, local time, the US Securities and Exchange Commission announced that it plans to introduce “Crypto Asset Regulation Rules” to establish a special securities issuance supervision framework for some investment contracts involving crypto assets. According to the SEC, the proposal aims to provide a more clear path for financing and innovation in the crypto asset market while retaining investor protections under federal securities laws. According to the proposal, the SEC plans to establish two securities registration exemptions for some investment contracts involving crypto assets: one allows issuers to issue no more than US$5 million in total within 4 years, and the other allows issuers to issue no more than US$75 million every 12 months. Both types of issuance must provide investors with descriptive disclosure in principle, and issuers subject to the $75 million exemption must also provide financial statements and fulfill ongoing reporting obligations. Furthermore, the SEC plans to establish a conditional “safe harbor”, and eligible crypto assets will not be treated as “investment contracts” under the relevant securities laws. The proposal is open for public comment for 60 days.