SEC Proposes First Crypto-Specific Rules, Potential Legal Path for Token Issuance

TREE NEWS update: Galaxy Research’s Alex Thorn reports that the SEC proposed ‘Regulation Crypto Assets’ on August 18, the first securities rules tailored for crypto asset issuance and sales, potentially allowing qualified token projects to legally offer to the public and establishing a mechanism to terminate investment contract status. The framework includes four stages: funding, disclosure, build-out, and exit, aiming to resolve regulatory uncertainty for existing tokens. If passed, it could usher in a ‘legal ICO 2.0’ in the US.