March 18, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly released a lengthy 68-page new regulatory guidance on Tuesday, clearly stating that most digital assets do not fall under securities, aiming to provide a clearer regulatory framework for the market.
Regarding asset classification, the SEC clearly identifies four categories of crypto assets that are not securities: digital commodities, digital collectibles, digital utilities, and payment stablecoins as defined by the GENIUS Act. The only category of crypto assets still subject to securities laws is digital securities, which are tokenized forms of traditional securities. Regarding investment contract determination, the SEC clarifies the termination conditions for investment contracts, requiring project teams to provide clear and unambiguous disclosure of their core management commitments. Once an investment contract terminates, the relevant crypto assets can be removed from securities law jurisdiction.
Regarding exemption pathways, Atkins proposed three mechanisms: first, the "startup exemption," allowing project teams to raise up to $5 million within four years; second, the "financing exemption," allowing up to $75 million in funding within 12 months, with required SEC disclosure filings; and third, the "investment contract safe harbor," providing clear non-securities determination standards for qualifying crypto assets. Atkins stated that the SEC plans to seek public comment on the proposed rules in the coming weeks and will work with the Commodity Futures Commission to propose rules for public comment.$BTC
March 18, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly released a lengthy 68-page new regulatory guidance on Tuesday, clearly stating that most digital assets do not fall under securities, aiming to provide a clearer regulatory framework for the market.
Regarding asset classification, the SEC clearly identifies four categories of crypto assets that are not securities: digital commodities, digital collectibles, digital utilities, and payment stablecoins as defined by the GENIUS Act. The only category of crypto assets still subject to securities laws is digital securities, which are tokenized forms of traditional securities. Regarding investment contract determination, the SEC clarifies the termination conditions for investment contracts, requiring project teams to provide clear and unambiguous disclosure of their core management commitments. Once an investment contract terminates, the relevant crypto assets can be removed from securities law jurisdiction.
Regarding exemption pathways, Atkins proposed three mechanisms: first, the "startup exemption," allowing project teams to raise up to $5 million within four years; second, the "financing exemption," allowing up to $75 million in funding within 12 months, with required SEC disclosure filings; and third, the "investment contract safe harbor," providing clear non-securities determination standards for qualifying crypto assets. Atkins stated that the SEC plans to seek public comment on the proposed rules in the coming weeks and will work with the Commodity Futures Commission to propose rules for public comment.$BTC