US SEC Chair Paul Atkins said the commission is advancing its own crypto fundraising rules through administrative rulemaking. It operates in parallel with the proposed capital raising exemption in the Senate’s version of the CLARITY Act.
US SEC Pushes for Separate Crypto Fundraising Rules
During the Vanderbilt University and Blockchain Association’s inaugural Digital Assets and Emerging Technology Policy Summit, SEC Chair Paul Atkins confirmed progress on a safe harbor proposal.
The SEC safe harbor proposal includes crypto startups’ registration exemption, fundraising exemption, and investment contract exemption. This comes in response to the SEC-CFTC crypto guidance when crypto assets fall under securities laws.
The rule will boost clarity in the US crypto industry, including allowing crypto startups to raise capital while providing investor protections. Paul Atkins added that the proposal is under review in the White House.
As CoinGape reported earlier, the SEC is also working on a tokenization innovation exemption. It will allow crypto firms and traditional finance (TradFi) to test blockchain-based products, such as tokenized securities, within a supervised sandbox without immediate or full registration.
“Reg Crypto” Capital Raising Exemption Under the CLARITY Act
The CLARITY Act will establish a much-needed market structure for digital assets, providing the SEC and the CFTC with separate oversight of the crypto industry. Notably, the SEC and CFTC unveiled the token taxonomy, classifying BTC, ETH, XRP, DOGE, ADA, SOL, and other crypto as non-securities.
The “Reg Crypto” is a proposed crypto fundraising exemption in the Senate’s version of the Clarity Act. It also allows crypto firms to raise capital from investors, distribute tokens, and work toward decentralization.
However, the SEC’s standalone capital fundraising rules provide greater clarity on disclosures and a cap on fundraising. It will complement the exemption in the CLARITY Act.
However, the crypto bill faces delays in the Senate, with negotiations ongoing over issues such as stablecoin yields and other requirements. As a result, the SEC is not waiting for congressional passage and is instead developing its own rules to provide near-term clarity for the crypto industry.
Meanwhile, Senator Bill Hagerty confirms the CLARITY Act is expected to enter the Senate Banking Committee next week, with progress continuing through April.
Source: https://coingape.com/us-sec-proposes-own-crypto-fundraising-rules-apart-exemption-clarity-act/
