The SEC will vote Friday on a proposal, dubbed "Regulation Crypto," that would let crypto projects raise capital without registering as securities. Projects would exit SEC oversight once their founders step back from active management, and the move comes after the Senate failed to advance the Clarity Act before its August recess.
The U.S. Securities and Exchange Commission will vote Friday on a plan that would let crypto projects raise capital without registering as securities, as long as they eventually step back from running what they built. If opened for comment, the meeting, set for Aug. 14 at 10 a.m. ET, would give the agency its first durable rule for the industry rather than another staff statement.
The Sunshine Act notice announcing the vote was posted Aug. 10 and says the commission will weigh a release creating a tailored framework for certain digital-asset offerings. Developers could raise money without triggering registration, then exit SEC jurisdiction once they are no longer engaged in active management of the project.
An exemption instead of enforcement
SEC Chair Paul Atkins has pushed the framework, called "Regulation Crypto Assets," as a system of exemptions rather than enforcement actions. According to Atkins' March remarks, the startup exemption "could last (say up to four years) and provide developers with a regulatory runway" to reach decentralization. The commission has not published the exemption's fundraising thresholds in the notice itself.
A stalled Senate bill
The proposal follows the Senate's failure to advance the Digital Asset Market Clarity Act — the bill meant to set a legal foundation for U.S. crypto market structure — before its August recess. TD Cowen analyst Jaret Seiberg called the rulemaking the first of several the SEC will pursue for regulatory certainty after the Clarity Act stalled.
A completed rule would be harder to unwind than the staff statements the SEC has issued this year on staking, airdrops, and mining. Still, traders on the prediction market Myriad currently give the Clarity Act 22% odds of passing this year.
Source: Decrypt
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