Val Dahiya was quoted in Law360 on the SEC’s newly proposed Regulation Crypto Assets framework, which is designed to allowcryptocurrency projects to raise capital from retail investors without registering offerings with the agency. The proposal includes exemptions for offerings ranging from $5 million to $75 million and a safe harbor allowing projects to shed securities law obligations after completing promised managerial efforts. The proposal also limits state oversight, preempting state registration and qualification requirements.
Val notes, "While they will retain enforcement power, if the exemptions preempt the states, then oftentimes if something goes awry, the states are left in a reactive mode, as opposed to identifying it beforehand and having the authority and ability to do something meaningful about it, to prevent it."
