- The SEC proposed a new regulatory framework for crypto investment contracts, offering exemptions for token issuances up to $5 million over four years and $75 million annually.
- The proposal follows the Senate’s failure to advance the CLARITY Act, which would have clarified federal oversight of digital assets.
- SEC Chair Paul Atkins stressed that legislation remains essential for durable rules, while the agency moves forward with its own framework.
- The public has 60 days to comment on the proposal after its publication in the Federal Register.
The U.S. Securities and Exchange Commission proposed new rules on Tuesday, creating a “tailored securities offering regime” for certain investment contracts involving crypto assets. The announcement came just days after the Senate failed to advance the Digital Asset Market Clarity Act, leaving Congress without a market structure bill before its month-long recess.
SEC Chair Paul Atkins said that “legislation remains indispensable to enacting ‘future-proofed’ rules of the road that are durable enough to protect the work we are undertaking today from being unwound by a future rogue regulator.” The proposed rules do not include an “innovation exemption” for crypto-based stocks, which had been widely expected.
Under the framework, crypto companies could issue up to $5 million in tokens over a four-year period or up to $75 million in a 12-month period. Additionally, a safe harbor would exempt certain cryptocurrencies from being treated as investment contracts, though issuers must provide financial statements and follow ongoing reporting requirements.
Meanwhile, the Commodity Futures Trading Commission scheduled a Thursday meeting on crypto, AI, and prediction markets, planning to address “areas where regulatory action can complement future congressional legislation.” White House crypto adviser Patrick Witt said at the Wyoming Blockchain Symposium that regulators would “let loose” on crypto regulation if Congress cannot pass the CLARITY Act.
Senate Majority Leader John Thune filed cloture to take up the CLARITY bill when lawmakers return in mid-September, but only 14 session days remain before the November election. If a floor vote fails, the Senate has just 22 more session days before new members are sworn in in 2027.
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