US SEC Plans Reg Crypto Rule to Create Compliance Path for Digital Asset Issuance

According to Sina Finance, the U.S. Securities and Exchange Commission plans to hold a meeting on Friday to formally propose a rule called "Reg Crypto" that would provide a standardized path for the lawful issuance of digital assets.According to Sina Finance, this would be the regulator's first formal rulemaking process for crypto assets. SEC Chair Paul Atkins has long made the rulemaking one of the core items in his crypto regulatory agenda.According to Sina Finance, the agency said in a notice released Monday night that a three-member commission will publicly solicit comments on the proposal at Friday's meeting. The rule proposal is expected to give crypto companies a project-financing path that would not trigger SEC registration requirements, as well as an exit path from regulatory jurisdiction when firms are no longer actively managing the project.According to Sina Finance, the move comes after the U.S. Senate last week failed to advance a key vote on the Digital Asset Market Clarity Act, which is intended to provide a legal basis for U.S. crypto market regulation. TD Cowen analyst Jaret Seiberg said that with the Clarity Act unable to move forward before the Senate's August recess, the SEC will launch multiple rulemakings to provide regulatory certainty for crypto assets.According to Sina Finance, the rule is expected to go through a process of drafting and finalization that could take several months, with the first stage including a typical two- to three-month comment period followed by what could be a longer revision process. Reg Crypto would proceed alongside other major steps the SEC has already taken to support the U.S. crypto industry.