The U.S. Securities and Exchange Commission proposed Regulation Crypto Assets, which would create two registration exemptions under the Securities Act of 1933 for crypto assets sold as part of investment contracts. A startup exemption would permit offerings of up to USD 5 million over four years, while a fundraising exemption would allow up to USD 75 million in each 12-month period, subject to financial statement and ongoing reporting requirements. Both exemptions would require principles-based disclosures and remain subject to federal antifraud and antimanipulation provisions. The proposal also includes a conditional safe harbor allowing an issuer to delink a crypto asset from an investment contract with which it was previously associated. The SEC is seeking feedback during a 60-day comment period, including on structures that could allow token holders to share in the growth and value of the enterprise building a crypto network.

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