RATE Group | Crypto Projects Could See Three-Year Exemption to Securities Laws
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Crypto Projects Could See Three-Year Exemption to Securities Laws

07 Feb Crypto Projects Could See Three-Year Exemption to Securities Laws

Posted at 06:25h in Cryptocurrency News by

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Blockchain projects could get a three-year exemption from U.S. securities laws to build decentralized networks, according to SEC Commissioner Hester Peirce’s latest safe harbor proposal.

Operating Under Regulatory Uncertainty

Cryptocurrency projects that sell tokens promising to build a decentralized network likely fall under the jurisdiction of U.S. securities laws. The Securities Exchange Commission (SEC) has repeated this stance both through public statements and high-profile enforcement actions.

Projects commonly navigate these restrictions in two ways. “Regulation D” exemptions, which restrict issuance to wealthy individuals, also known as “accredited investors,” and “Regulation S” exemptions, which restrict issuance to overseas investors.

Ultimately, both routes restrict the availability of tokens to end users and the public.

The SEC has also started ramping up high-profile enforcement actions. Block.One, the company responsible for launching EOS, was ordered to pay…

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