The Securities and Exchange Commission has proposed a tailored crypto fundraising framework as Congress pauses work on the CLARITY Act during its August recess. The plan would create new exemptions, disclosure duties and a safe harbor for certain crypto offerings.
The proposal arrives before a September Senate test that could determine whether lawmakers advance the broader market structure bill.
The SEC said Tuesday that its proposal would create a clearer framework for certain investment contracts involving crypto assets. The agency said the regime would preserve investor protections while giving issuers clearer capital-raising routes.
Under the proposal, crypto companies could issue up to $5 million in tokens over four years. They could also raise to $75 million during 12 months under separate exemptions.
Meanwhile, the plan would create a safe harbor that could keep qualifying cryptocurrencies from treatment as investment contracts. Issuers would need financial statements and ongoing reports. The public would receive 60 days to comment after Federal Register publication.
The SEC released the proposal days after the Senate failed to advance the Digital Asset Market Clarity Act. This legislation aims to define federal oversight roles across the crypto market.
SEC Chair Paul Atkins said legislation remains necessary for durable rules and pledged continued SEC support for the CLARITY Act. The proposal did not include the expected innovation exemption for crypto-based stocks.
Before the August recess, Senate Majority Leader John Thune filed cloture on a motion to take up the bill. The Senate plans a September 15 cloture vote when lawmakers return. Could the SEC’s proposal endure without Congress passing the CLARITY Act?
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The coming vote carries a procedural reminder from 2021, when crypto groups backed changes to broker-reporting language in an infrastructure bill. The proposed amendment sought protections for miners and wallet makers.
Senator Pat Toomey requested unanimous consent for the compromise. Senator Richard Shelby blocked the request unless senators also accepted his unrelated proposal for another $50 billion in military spending.
The Senate rejected that condition, so the infrastructure bill moved forward without the crypto amendment. This year, senators face a narrow calendar after recess, with 14 session days before another break ahead of November elections.
At the same time, the SEC proposal comes before a scheduled CFTC meeting covering crypto, artificial intelligence, and prediction markets. The CFTC said its regulatory actions could complement future congressional legislation.
The SEC proposal creates new fundraising exemptions, reporting duties and a safe harbor while Congress remains divided over the CLARITY Act. The September 15 cloture vote will decide whether the Senate advances the broader market structure bill as regulators continue acting within their existing authority.