Galaxy Research has said the SEC’s proposed Reg Crypto framework could give hundreds of existing tokens a formal route out of investment contract status.
Summary
- The SEC expects about 475 issuers each year to use the proposed safe harbor.
- Galaxy said the exit process could matter more initially than the two fundraising exemptions.
- Reg Crypto would permit qualifying offerings of up to $5 million or $75 million.
- Public comments on the proposed rules are due by Oct. 20.
Galaxy Research, in an Aug. 21 analysis, said the proposal could replace years of uncertainty over when an investment contract tied to a token ends with a filing and a recorded date.
Alex Thorn,…
