On August 18, the SEC proposed Regulation Crypto Assets, a new framework that would establish a “fit-for-purpose” regime for offering certain investment contracts involving crypto assets without registration under the Securities Act of 1933, as amended. After spending nearly a decade regulating crypto assets primarily through informal guidance and enforcement, the proposal represents a significant shift: it would establish the Commission’s first bespoke crypto offering regime. For additional insight on Regulation Crypto, read our client alert.
On August 18, the CFTC issued a Notice of Proposed Rulemaking on amendments to registration requirements for commodity pool operators and commodity trading advisors. The proposed rule would add a new exemption from commodity pool operator registration for certain SEC-registered investment advisers operating commodity pools limited to sophisticated investors, along with a related commodity trading advisors registration exemption. It would also increase the capital contribution threshold in the existing small commodity pool operator’s registration exemption to reflect inflation. Chairman Michael S. Selig stated that the proposal advances the CFTC’s mandate to promote U.S. market competitiveness by addressing “overly burdensome and duplicative rules.”
On August 17, the Treasury Department issued a Notice of Proposed Rulemaking on GENIUS Act statutory prohibitions and limits on payment stablecoin issuance, offer, and sale in the United States. The proposed rule would define what it means to “issue a payment stablecoin in the United States” and to “offer or sell” a stablecoin to a person in the United States, providing regulatory clarity for the industry on basic terminology. Critically, the proposed rule would force foreign stablecoin companies to comply with U.S. registration requirements, including appropriate licensing, before offering stablecoins in the United States. Subject to “reasonable due diligence,” digital asset service providers seeking to offer or sell foreign payment stablecoins may rely on foreign issuers representations that it has the “technological capability” to comply with the GENIUS act. The proposed rule would offer certain safe harbors for foreign payment stablecoin issuers and requests information on the creation of more exemptions.