The US Securities and Exchange Commission today proposed a new regulatory framework for cryptocurrency assets, the first major step under US President Donald Trump’s administration to give the industry the tailored rules it has long pushed for.
The SEC’s proposal would exempt certain crypto companies and offerings from US securities rules, which should make it easier for crypto companies to issue tokens and raise money.
The SEC’s plan “seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws,” Chairman Paul Atkins said in a statement.
It would allow a one-time exemption to issue up to $5 million in crypto tokens during a four-year period.
It would also allow offerings of up to $75 million during each 12-month period, though issuers would still have to provide financial statements and meet regular reporting requirements.
Under both exemptions, token issuers would still need to disclose certain information to investors.
The SEC’s proposal also includes a safe harbor that would exclude a crypto asset from being deemed an investment contract, if certain conditions are met.
Last Friday, a national US bank regulator conditionally approved a bank charter application linked to Mr Trump and his family’s crypto venture, World Liberty Financial, effectively greenlighting an expansion of its stablecoin operations.
The Office of the Comptroller of the Currency said in a letter published on its website that it has granted conditional preliminary approval of World Liberty Trust Company’s application for a national trust charter, which it applied for in January.
The charter, if ultimately approved at a later date, would allow World Liberty, through the newly created trust bank, to manage and hold assets on behalf of customers and settle payments faster. It does not generally permit deposit-taking or lending like traditional banks.
Hoping to capitalise on the Trump administration’s crypto-friendly stance, the industry has been knocking on the OCC’s door for such charters. They allow crypto companies to hold assets on behalf of clients nationwide under a single federal charter, as well as to provide other settlement and asset servicing functions making it easier to court major institutional clients.
