- Typically, a formal proposal is forwarded to OIRA for evaluation after the SEC votes to accept it.
- Under the startup exemption, projects could raise up to a certain amount over four years with less stringent disclosure requirements.
Paul Atkins, chair of the US Securities and Exchange Commission (SEC), has said that the White House is reviewing a crucial crypto industry safe harbor proposal.
Atkins informed attendees at Monday’s Digital Assets and Emerging Technology Policy Summit that the SEC’s proposal to regulate cryptocurrency, which was announced in mid-March, has been sent to the Office of Information and Regulatory Affairs.
Atkins stated:
“We will have reg crypto that we will be proposing here shortly. It’s in fact at OIRA right now, which is the next step before being published.”
More Legal Clarity for the Sector Underway
The three key points discussed in Regulation Crypto Assets are a startup exemption, an exemption for fundraising, and a safe harbor for issuers in investment contracts. An increase in crypto innovation in the US and more legal clarity for the sector might result from the idea becoming formal guidelines under the SEC’s supervision.
To make the entire package practical, the SEC needs to hear from the marketplace, according to Atkins. Although he refrained from providing many details, he did mention that the SEC is “building into it” features such crypto safe harbors and exemptive relief, among others.
Typically, a formal proposal is forwarded to OIRA for evaluation after the SEC votes to accept it. Upon completion of the review, OIRA publishes the document in the Federal Register and makes it available for public input.
Under the startup exemption, projects could raise up to a certain amount over four years with less stringent disclosure requirements; under the fundraising exemption, issuers could raise up to a certain amount over twelve months while still being able to use other exemptions from federal securities law registration.
When the project team stops doing all that was “represented or promised” in the investment contract, some assets are exempt from being considered a security according to the investment contract safe harbor. Amid the ongoing market downturn, any positive updates in respect to crypto regulation will likely boost investor confidence.
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