‘Regulation Crypto’ Arrives as US Crypto Policy Enters a New Era

The SEC released its proposed Regulation Crypto framework last week, opening a 60-day period for public comments.
The U.S. Securities and Exchange Commission has unveiled proposed rules under its “Regulation Crypto” initiative, outlining how it intends to regulate fundraising by digital asset companies.

The SEC’s proposal sets out a framework for how crypto companies and developers could raise capital through token offerings while staying within the agency’s regulatory boundaries.

Under the current administration, the SEC has issued numerous staff statements on crypto but has undertaken relatively little formal rulemaking. The timing is important because any rules would still need to go through the finalization process, followed by a period for companies to adjust and comply.

The framework includes different requirements depending on the amount of capital a startup seeks to raise and the way its business operates. The SEC’s proposal provides further details on how those provisions would apply.
Lewis Cohen, a partner at Cahill Gordon & Reindel LLP, called the proposal a significant step in a positive direction, praising the SEC for the work and effort behind it.
Cohen nevertheless argued that the crypto industry still needs the Clarity Act to establish a more complete regulatory framework.
U.S. President Donald Trump also called on Congress to advance the Clarity Act during a press conference last Wednesday attended by executives from major cryptocurrency and traditional financial companies.
SEC Chairman Paul Atkins and CFTC Chairman Mike Selig also participated in the event, alongside Coinbase CEO Brian Armstrong, Kraken CEO Arjun Sethi and other industry leaders. The gathering took place one day before the CFTC’s Innovation Advisory Committee meeting.
At that meeting, Selig said the CFTC was prepared to begin developing its own rules if Congress fails to pass the Clarity Act.