The SEC proposes Regulation Crypto Assets while the CLARITY Act stalls

Two things happened in August that matter to anyone launching a token on Robinhood Chain, and it is important not to confuse them.

What is proposed

On August 18 the SEC proposed Regulation Crypto Assets. As summarized by counsel and trade press, it would create three pathways for token fundraising: a startup exemption of up to USD 5 million over four years with principles-based disclosure, a Tier 1 exemption up to USD 20 million per year with financial statements, and a Tier 2 up to USD 75 million per year with audited statements. It also proposes a Form TR, through which an issuer can claim it has completed or permanently ceased the managerial efforts that made its token an investment contract.

It is a proposal with a 60-day comment period after Federal Register publication. Nothing in it is in force today.

What is stalled

The CLARITY Act, the market-structure bill that would settle which tokens are commodities and which agency supervises spot markets, cleared the Senate Banking Committee 15 to 9 in May and produced a merged text on July 22. The Senate left on August 8 without a floor vote. Galaxy Research cut its estimate of passage this year to 10%, citing an unresolved fight over an ethics provision for senior officials, the treatment of stablecoin rewards, and developer protections.

What still applies

Section 17(b) of the Securities Act, the anti-touting rule, and the FTC's endorsement guides apply today to anyone paid to promote a token. HoodWire's own disclosure policy is written to those rules and is on the About page.