SEC’s Crypto Rules Confirm It Is Now the Crypto Promotion Commission

WASHINGTON, D.C.—Benjamin Schiffrin, Director of Securities Policyfor Better Markets, issued the following statement in connection with the Securities and Exchange Commission (SEC) proposing to exempt crypto offerings from the federal securities laws:

“Under Chair Paul Atkins, the Securities and Exchange Commission has become the Crypto Promotion Commission. This is more evident today than ever. That’s because the SEC’s proposed ‘Regulation Crypto Assets’ exempts offerings of crypto assets from the protections of the federal securities laws. For over 90 years, the SEC has sought to ensure that offerings of securities to the public are registered so investors receive the disclosures that they need to make informed investment decisions. Now, the SEC proposes to allow the crypto industry to sell crypto to the public without the protections it exists to enforce.  

“The SEC pretends that there is historical precedent for this approach. There is not. According to the SEC, its proposed rules for crypto asset offerings are similar to its ‘historical approach of creating bespoke frameworks for certain other unique asset classes’ such as asset-backed securities and real estate investment trusts.’ But it acknowledges in a footnote that the rules for those asset classes created a framework for conducting registered offerings. Regulation Crypto Assets creates exemptions from registration.