SEC Proposes Virtual Asset Innovation Exemption... Allowing Up to $75 Million Annually

The U.S. Securities and Exchange Commission (SEC) has proposed a regulatory framework exempting some virtual asset investment contracts from securities registration obligations. The proposal includes an exemption allowing up to $5 million (approximately 685 billion won) raised over four years, or an annual cap of $75 million (approximately 102.8 billion won). In its 'Regulation Crypto Assets' document released on August 18, the SEC stated that issuers must provide principle-based disclosures and remain subject to anti-fraud and market manipulation provisions under securities law. The proposal also includes a conditional safe harbor for virtual assets once key management activities outlined in the investment contract are completed.

The SEC's move follows stalled progress on a cryptocurrency bill in the Senate, according to DoubleBlock. The proposed rule is not final; it remains a draft subject to public comment until October 20.