SEC Proposes Crypto Safe Harbors as Major Tokens Rise

The U.S. Securities and Exchange Commission has relied heavily on enforcement to define the boundaries of crypto markets, leaving issuers uncertain about when token sales trigger securities laws. On March 17, the SEC and Commodity Futures Trading Commission issued a joint interpretation distinguishing crypto assets from the investment contracts through which they may be sold. That framework has gained importance as the CLARITY Act remains stalled in Congress.

On Aug. 18, the SEC proposed “Regulation Crypto Assets,” including a startup exemption for raising as much as $5 million over four years and a broader exemption of up to $75 million in any 12-month period. It would also create a safe harbor once an issuer permanently ends the managerial efforts promised to investors. Major tokens traded mostly higher on Aug. 19, with Bitcoin near $64,289, up 0.2%, and Ether around $1,917, up 1.1%.