THE USSEC PUBLISHED PROPOSED RULES FOR THE REGULATION OF ENCRYPTED ASSETS TO PROVIDE A FINANCING EXEMPTION FOR START-UPS

On 18 August, the United States SEC published proposed rules for the regulation of encrypted assets, which allow start-up firms to finance up to $5 million over four years or eligible issuers to finance up to $75 million over 12 months. According to Drew Hinkes, a partner in Winston & Strawn, the project could theoretically finance $75 million every 12 months. Lilya Tessler, Head of the Sidley Financial Technology and Block Chain Operations, stated that follow-up financing would have to be resubmitted and reviewed by the SEC. Lee Reiners, an expert in financial supervision at Duke University, believes that the rule is unlikely to be repeated in 2017, with its early issuance and enthusiasm. The SEC expects that approximately 130 such exemptions will be issued annually and that approximately 475 issuers may use safe ports under investment contracts. The proposal provides that investment contracts related to encrypted assets may be transferred with tokens in secondary market transactions。