SEC Closes Comment Period for New Crypto Regulations

The U.S. securities regulator SEC is closing the comment period today on the proposal for new crypto regulations. This plan aims to clarify how crypto projects can raise funds and what information they must provide to investors. Until the deadline, companies, interest groups, and individuals can submit their opinions. However, the closure of this round does not mean that the rules will be implemented immediately; the regulator must first assess the responses. The proposal, Regulation Crypto Assets, was presented in August and focuses on investment contracts related to cryptocurrencies. It offers two pathways for projects to be exempt from registration requirements under certain conditions. A starter scheme allows projects to raise up to $5 million within four years, while another scheme permits a maximum of $75 million every twelve months. These exemptions are not without oversight; companies must publish information and comply with rules against fraud and market manipulation. The plan also includes a 'safe harbor' for situations where specific conditions are met, clarifying when an investment contract has ended. The responses in the public file come from, among others, Chainalysis and lawyers. The regulator can amend the proposal after review, and the end of the comment period does not mean that the rules automatically come into effect.

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