The US Securities and Exchange Commission (SEC) has proposed a new rule, Regulation Crypto Assets, which offers crypto issuers two new exemptions from standard securities registration. The first exemption caps fundraising at $5 million over four years, while the second allows up to $75 million in any 12 months. Both require issuers to give investors plain-language disclosures about the offering, while the larger exemption also requires financial statements and ongoing reporting after the sale. According to SEC Chairman Paul Atkins, the rule offers 'clear pathways to raise capital under the federal securities laws.' The proposal also clarifies when a crypto asset stops being treated as part of an investment contract, addressing a key issue in the industry. The rule is open to public comment for 60 days and is seen as a significant step towards modernizing federal securities regulations for crypto assets.
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