Cryptocurrencies

SEC wants to simplify rules on securities – Cryptocurrencies

Securities Exchange Commission SEC Washington DC

A DAO to manage an ICO: would business freedom take on its full meaning without the intervention of a third-party regulatory authority concentrating the power of financial policeman?

The Securities and Exchange Commission (SEC) adopts easing measures to regulate fundraising.

Dry businesses, the SEC is more flexible

The DRY increases investment limits for crowdfunding, initial securities offerings – ICO, IPO, etc. – from 50% to 100% depending on the case.

The maximum amount of an initial offering of securities for the second category of Regulation A is increased from $ 50 million to $ 75 million, and from $ 15 million to $ 22.5 million for second sales.

For the initial offers falling within the framework of Regulation D, this limit is increased from 5 to 10 million dollars.

Added to this is the modification of the guidelines for crowdfunding: the limit is now $ 5 million, up from $ 1.7 million previously.

Accredited investors are exempted from all investment limits.

Following the economic crisis in the country, the DRY introduced temporary measures in May 2020 to allow companies raising up to $ 250,000 to benefit from an exemption.

It has decided to extend this measure for 18 months as part of the current easing procedure.

The DRY also decided to allow companies running a crowdfunding campaign or an initial offering of securities to “test the waters” to determine the type of exemption they would use, and to ensure that an initial offering of securities does not become a solicitation or advertisement.

Unregistered tracks: a classic

Any ICO must be the subject of a registration or an exemption study with the DRY.

The DRY has sued numerous crypto projects for failing to register securities under an ICO.

She demanded a ban on the sale of tokens GRAM in the United States.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

The incorporation of all its changes into the current regulations should be effective by the end of the year. However, they will probably be implemented next year. The SEC had indicated that these changes would come into effect within 2 months of their publication. La commission still owes make efforts to really catch up with Bitcoin (BTC) and cryptocurrencies in general. Not sure that the laws supposed to govern a decentralized financial system are adapted to the supervision of projects resting on a decentralized basis.

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