The US Securities and Exchange Commission (SEC) has just proposed several new rules for the crypto industry, with a 60-day commentary period.

Dubbed “Regulation Crypto Assets,” the August 18 proposal provides specific guidance for cryptocurrencies grouped under securities or investment contracts.

SEC Recommends Crypto Securities Regulatory Framework

To begin with, the SEC acknowledges that crypto tokens are securities if investors purchase them expecting to make returns from the efforts of a central team (Howey test).

This rule, however, presents filing, disclosure, and audit challenges for many crypto startups.

Under the proposed rules, the agency grants these projects a “safe harbour,” or a window of exceptions to the 1933…