The SEC proposed Regulation Crypto Assets, its first formal regulatory framework for the crypto sector, providing two paths for token sales without registration: up to $5 million over four years, or up to $75 million over twelve months, mirroring Reg A+ Tier 2. Issuers must provide principles-based narrative disclosures similar to a whitepaper, with financial statements and ongoing reporting for the higher tier. A safe harbor provision allows qualifying tokens to no longer be subject to investment contract once essential managerial efforts are completed. Chairman Paul Atkins anchors this framework in the Token Safe Harbor proposed by Commissioner Hester Peirce in February 2020.
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