• The SEC introduced its proposed “Regulation Crypto” framework last week, giving stakeholders 60 days to submit public comments.
• The U.S. Securities and Exchange Commission’s proposal sets out how the agency could regulate capital raising by digital asset companies, including fundraising through token offerings.

Regulation Crypto Explained

• The proposed framework outlines the SEC’s view on how crypto firms and developers could raise money through tokens without violating securities laws.

Why It Matters

• Since the current administration took office, the SEC has issued numerous crypto-related staff statements but has pursued relatively little formal rulemaking. The Regulation Crypto proposal marks a more substantive move toward formal rules, although the SEC would still need to finalize the framework before companies could be required to comply.
• Lewis Cohen, a partner at Cahill Gordon & Reindel LLP, said the proposal represents a meaningful step forward and praised the SEC for the effort behind it.
• Cohen added that the crypto industry still needs the Clarity Act to provide a more complete and durable regulatory framework.
• President Donald Trump also called on Congress to approve the Clarity Act during a press conference last Wednesday attended by executives from major crypto and traditional financial institutions.
• SEC Chairman Paul Atkins and CFTC Chairman Mike Selig joined the event, alongside Coinbase CEO Brian Armstrong, Kraken CEO Arjun Sethi and other industry leaders. The gathering took place one day before the CFTC’s Innovation Advisory Committee met.
• At that meeting, Selig said the CFTC was prepared to pursue its own rulemaking if Congress ultimately fails to pass the Clarity Act.

What’s Ahead

• No major hearings or regulatory meetings are currently scheduled for the week ahead.