SEC Develops Own Crypto Fundraising Rules Amidst CLARITY Act Delays

The US Securities and Exchange Commission (SEC) is taking a proactive approach to regulating the cryptocurrency industry by developing its own crypto fundraising rules through administrative rulemaking.

The proposed rules, which are separate from the 'Reg Crypto' exemption in the Senate's version of the CLARITY Act, aim to provide greater clarity on disclosures and a cap on fundraising for crypto startups.

SEC Chair Paul Atkins announced the development during the Vanderbilt University and Blockchain Association's Digital Assets and Emerging Technology Policy Summit. The new rules will allow crypto firms to raise capital while providing investor protections, in line with the SEC-CFTC crypto guidance.

The 'Reg Crypto' exemption in the CLARITY Act, on the other hand, allows crypto firms to raise capital from investors, distribute tokens, and work toward decentralization. However, the SEC's standalone rules provide more comprehensive guidelines for crypto fundraising, complementing the exemption.