Melker Bengtsson
TL;DR
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The SEC has called a meeting to discuss Regulation Crypto, the agency's first formal ruleset for crypto
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Reg Crypto would create a new, dedicated offering regime for crypto fundraising
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Startups could raise up to $5 million, mature issuers $75 million, without full securities registration
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Friday's vote is on whether to issue the proposal for public comment, not the final rule
The US Securities and Exchange Commission has called a meeting to discuss Regulation Crypto, the agency’s first formal ruleset for crypto, on August 14th. Regulation Crypto, or Reg Crypto, as the ruleset is called, would create a new, dedicated offering regime for crypto fundraising. That includes ICOs, IEOs and more. The SEC Sunshine Act meeting notice from yesterday (August 10th), said:
The Commission will consider whether to issue a release proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets.
This comes just days after the Senate decided to push the CLARITY Act vote into September, showing that progress is still being made in regulating the crypto markets.
$5 Million for Startups, $75 Million for Mature Issuers
Reg Crypto would give crypto projects a legal way to raise funding, without being subjected to the rigorous rules that a full securities registration would entail. Reg Crypto has three main components: a startup exemption, a fundraising exemption and an investment contract safe harbor.
The rules would allow startups to raise up to $5 million over four years, more mature issuers to raise $75 million over any 12 month period, both without full securities registration. It would also create a path for a token to exit security classification altogether.
What Happens After Friday's Vote
The vote on Friday is on whether to issue the proposal for public comment, not on the final rule. It’ll be voted on by three Republican commissioners, and will be decided by majority. If accepted, the proposal will enter a period where it’s open for public comment for about two to three months. Comments and feedback are then reviewed and the proposal rewritten, which is when the final vote will fall.
The SEC is no longer waiting for Congress to deliver the framework, or for the Senate to pass the CLARITY Act, they’re moving ahead and delivering on President Trump's goal of making the US the crypto capital of the world.
