[Bitcoin Now] US SEC Eases Virtual Asset Issuance Rules... Proposes Exemption from Securities Registration for Up to $75 Million

The U.S. Securities and Exchange Commission (SEC) is pushing forward a plan that would allow virtual asset issuers to raise up to $75 million (approximately 106 billion won) per year without having to register a separate securities issuance. This move is being seen as the first substantive action by the Trump Administration to establish a dedicated regulatory framework tailored to the unique characteristics of virtual assets—something the industry has long demanded.

Reuters Yonhap News

On August 18 (local time), the SEC announced that it will exempt registration requirements for a single public offering of virtual assets up to $5 million at a time, over a four-year period. This means that public offerings can be conducted without the need for formal registration documents equivalent to a securities registration statement in the Korean stock market. Additionally, the SEC has proposed waiving registration requirements for offerings of up to $75 million every 12 months. However, issuers are still required to submit financial statements and fulfill regular reporting obligations. Both categories of exempt issuers must disclose certain information to investors.

SEC Commissioner Paul Atkins explained that this proposal addresses the funding challenge faced by initial virtual asset projects since the emergence of blockchain technology. He stated, "This is the SEC's answer to the question of how to raise necessary funds during the stage of developing the network on which virtual assets will be used."

The SEC explained that it aims to reduce regulatory burdens for virtual asset companies. The agency also established a safe harbor provision that would allow virtual assets to not be viewed as "investment contracts" under securities law if the issuer completes or discontinues the key management activities promised to investors. As a result, it will become easier for certain virtual assets to move out of the scope of SEC securities regulations and under the jurisdiction of the Commodity Futures Trading Commission (CFTC).

Commissioner Atkins emphasized that establishing a sustainable regulatory framework—so that regulators cannot overturn the current virtual asset regulatory reforms—will require legislative action by Congress. This measure comes while the Clarity Act, a bill on the structure of the virtual asset market, is stalled in Congress.

The virtual asset industry welcomed the new regulation. Cody Carbone, CEO of the industry group Digital Chamber, said they intend to cooperate with the SEC so that consumers and the virtual asset industry can grow within the United States.

However, the plan will not go into effect immediately. The SEC stated that following its publication in the Federal Register, the proposal will undergo a 60-day public comment period. After that, the SEC will revise the provision based on received comments and adopt the rule through a committee vote before it takes effect.

This content was produced with the assistance of AI translation services.