US SEC PROPOSES TO INTRODUCE A SYSTEM OF ISSUANCE OF ENCRYPTED ASSET SECURITIES

Wu stated that it had been informed that the United States Securities and Exchange Commission (SEC) had proposed the introduction of a “regulation crypto assets” to establish a special securities issuance system for some investment contracts involving encrypted assets. The proposal proposes two registered exemptions to the Securities Act: one for one-time application, allowing the issuer to collect up to $5 million over a four-year period, and the other allowing the issuer to raise up to $75 million every 12 months. Both exemptions require the disclosure of relevant information to the investor, who also has to provide financial statements and fulfil ongoing reporting obligations. The proposal also proposes a conditional safe harbour under which encrypted assets can no longer be considered subject to an “investment contract” once the relevant conditions are met Securities subject to exemptions under the new regulations and some secondary market transactions may also be exempted from state securities registration and qualification requirements. The proposal will be published in the Federal Gazette for 60 days for public comment。