Comments on the SEC's proposed Regulation Crypto Assets close Tuesday, with crypto firms and Wall Street groups asking for changes. The Hyperliquid Policy Center, AIMA and SIFMA each want revisions to the rule or the related innovation exemption.
Comments on the SEC's proposed Regulation Crypto Assets are due Tuesday, with more than 100 submissions filed so far. Digital asset firms, Wall Street institutions and advocacy groups are using the final stretch to argue how the agency should shape the rule.
What the proposal would exempt
The rule seeks to offer a pathway for investments involving digital assets by exempting certain offerings from securities law. It includes a startup exemption for offerings of up to $5 million. A fundraising exemption would cover offerings of up to $75 million for a one-year period.
Industry groups ask for changes
The Hyperliquid Policy Center urged the SEC to adopt Reg Crypto but said changes were needed on how airdrops are treated. It asked the SEC to codify earlier language that an airdrop giving nothing in exchange for the asset involves no investment of money and is therefore not a security.
It also argued that the proposed safe harbor was too limited. According to its blog post: "The proposal’s new safe harbor requires a certification that many projects cannot make".
Meanwhile, the Alternative Investment Management Association also asked for revisions, including information to explain investors' legal rights and risks that could extend to managers as well.
SIFMA targets the innovation exemption
The SEC also proposed an innovation exemption, which went into effect in September and opens the door to onchain trading of tokenized stocks. It is a five-year exemption for certain trading venues, called tokenized securities venues.
On Monday, the Securities Industry and Financial Markets Association said the SEC needs to address investor protection immediately and that changes should be made in how issues opt in.
CFTC looks at compute and oil contracts
The Commodity Futures Trading Commission is also pushing forward its rules. It approved the first perpetual futures for Kalshi and Coinbase in August. In a post on Tuesday, the Hyperliquid Policy Center said the CFTC should bring compute contracts into the U.S.
Source: The Block
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