Regulation Crypto Assets

The proposal, titled “Regulation Crypto Assets,” would create a tailored offering regime for certain investment contracts involving crypto assets. The proposal includes two exemptions from the registration requirements of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period, and the second exemption would permit offerings of up to $75 million during each 12-month period. Issuers would provide principles-based disclosures and remain subject to the securities laws’ antifraud and antimanipulation provisions. The proposal also includes a conditional safe harbor from the term “investment contract” in the definition of “security.”