The US Securities and Exchange Commission (SEC) has proposed new rules that could affect the cryptocurrency industry after lawmakers in Congress failed to pass a market structure bill before they break for a month-long recess.
In a notification on Tuesday, the SEC said said The agency proposed rules to create “a clear and fit-for-purpose framework for certain investment contracts involving crypto assets.” According to the regulator, the “appropriate securities offering regime” will allow entities to raise capital while preserving investor protection.
The agency’s rules did not include an “innovation exemption” for crypto-based stocks, which was also expected to be announced. Notably, the proposed rules came just days after the US Senate failed to advance the Digital Assets Market Transparency (CLARITY) Act, a bill expected to clarify the role of federal agencies in crypto oversight and regulation.
“(L)egis remain essential to enacting ‘future-proof’ rules of the road that are durable enough to protect the work we do today from being undone by a future rogue regulator.” said SEC Chairman Paul Atkins. “The SEC has supported and will continue to support Congress to deliver clarity legislation to President Trump’s desk.”
Under the proposed rules, crypto companies would be granted exemptions that would allow them to issue up to $5 million in tokens over a four-year period and up to $75 million in tokens over a 12-month period, as well as a safe harbor exempting cryptocurrencies from being considered “investment contracts.” Token issuers must provide financial statements and “be subject to ongoing reporting requirements.”
The public will have 60 days to comment on the proposal after publication in the Federal Register.
Related: Clarity or not, crypto is not going back into the bottle: Bitwise
In the absence of legislation from Congress, the SEC’s proposed rules came ahead of a scheduled Thursday meeting of the US Commodity Futures Trading Commission (CFTC) on crypto, AI and prediction markets. The commodity regulator said it plans to address “areas where regulatory action may complement future congressional legislation.”
Atkins was scheduled to speak at the Wyoming Blockchain Symposium on Tuesday, but canceled amid the SEC announcement. White House Crypto Advisor Patrick Witt said U.S. Regulators Will “Pull Up” on Crypto Regulation If Congress Fails to Move on Clarity Act.
Chances of clarity before the new Congress is sworn in?
Before the Senate adjourned for its August state work deadline, Majority Leader John Thune filed a motion to take up the Clarity crypto bill when lawmakers return in mid-September.
After the August recess, senators have just 14 days in session before adjourning again before the November election. If Thune and Republican lawmakers can’t get a floor vote before then, the Senate has 22 more days in session before 2027, when new members of Congress will be sworn in.
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