SEC Chair Atkins Proposes Rule: A Compliance Path for Raising Capital While Developing Networks

SEC Chair Paul Atkins aims to provide a clear path for compliance with federal securities laws for crypto projects seeking to raise capital while developing their networks, through the “Regulation Crypto Assets” proposal announced on August 19.

According to Wu Blockchain, SEC Chair Paul Atkins announced a new rule proposal to address the regulatory issues that the crypto industry has long faced. Atkins stated that the US has entered a historic era of reform in terms of crypto regulations.

According to Atkins’ statement, one of the fundamental issues in the industry is how projects will engage in the capital raising process while the networks where crypto assets will be used are still under development, and how they will simultaneously comply with federal laws. The proposal titled “Regulation Crypto Assets” aims to bring a clearer compliance framework to this issue.

SEC’s crypto rule proposal aims for a compliance path

The proposal aims to provide entities issuing the relevant investment contracts with a distinct path to conduct fundraising activities in compliance with federal securities laws while the network development process is ongoing. Thus, it is intended for projects to both access financing for growth and avoid running afoul of securities regulations.

However, the announced study is not yet a regulation that has gone into effect; it is in the rule proposal stage. Therefore, “Regulation Crypto Assets” does not create a new, directly enforceable obligation for crypto companies.

In addition to the regulatory step, the SEC will continue to support Congress’s legislative work regarding the crypto market. The agency announced that it will continue to contribute to Congress as the CLARITY Act progresses. This approach indicates that crypto regulations in the US are progressing simultaneously through both agency-prepared rules and the legislative process.