SEC set to close public comment period on proposed crypto rules
The US Securities and Exchange Commission (SEC), the main federal overseer of securities markets, will stop accepting public comments on Tuesday on its proposed crypto rules, called Regulation Crypto Assets. The rules were first proposed in August, after Congress failed to pass a bill that would have set out how crypto is regulated across the government.
The proposal sets out what the SEC calls a clear framework for certain investment contracts involving crypto assets. An investment contract is a promise tied to a project that may count as a security under US law.
What the comment period produced
- The SEC gathered roughly 140 comments from interest groups and individuals over 60 days.
- The proposal covers a safe harbor that would stop token issuers from being treated as issuing investment contracts, plus exemptions for companies offering tokens up to a set amount.
- Six people filed comments anonymously.
Support from industry groups and investors
The Markets in Crypto Assets Crypto Alliance, a group set up to help organizations use the European Union's digital asset rules, broadly backed the SEC's proposed changes to disclosure requirements. It also suggested amendments asking the SEC to define more clearly the concepts and data structures specific to crypto assets and the related disclosure rules.
SkyBridge Capital founder Anthony Scaramucci also said he would support the proposal. He said the rules respond to organic adoption and represent a return to the Commission's proper role. Scaramucci did not point to Congress's inaction on the Digital Asset Market Clarity (CLARITY) Act when he said this.
Legal experts warn the rules are easier to challenge
Many comments praised the SEC for moving crypto regulation forward or said commenters were open to further discussion. But some legal experts say these rules could be overturned more easily than an act of Congress. The SEC and the Commodity Futures Trading Commission, the two agencies overseeing parts of the crypto industry, are also still short of leadership staff.
Why the method of rulemaking matters
Because Congress did not pass the CLARITY Act, the SEC is acting on its own through agency rulemaking rather than under a law passed by lawmakers. That is the point legal experts raise when they say the rules may not hold up as well as legislation would. The supplied material does not say what challenge, if any, has actually been filed.
What happens next
The SEC's public comment period closes on Tuesday. The agency has not announced a final vote or start date for the rules in the supplied material.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.