SEC Announces Forthcoming Regulations for Crypto Assets

The Securities and Exchange Commission shared that it will soon publish new rules for investment contracts containing crypto assets, including exemptions from registration requirements.

As the CLARITY Act languishes in the United States Senate, the US Securities and Exchange Commission is moving forward to enact regulations for cryptocurrency investments based on existing law. The commission will soon publish “Regulation Crypto Assets” in the federal register for public commentary, preluding finalization of the proposed rules.

The new regulations could create two classes of exemptions for crypto investments in regard to standard registration requirements for investments and a new classification for crypto assets. The rules might also establish a new designation for firms who deal in crypto assets which could preempt existing standards.

SEC announces regulations for crypto assets

A Tuesday press release from the Securities and Exchange Commission (SEC) lays out the motivation for the new rules. The SEC has proposed the rules to “​​create a clear and fit-for-purpose framework for certain investment contracts involving crypto assets.”

An attached fact sheet lays out the aims of the new regulation. The overarching objective is to establish separate standards for cryptocurrency investments.