Woofun AI reports that the SEC published 'Regulation Crypto Assets' in the Federal Register on August 21, initiating a 60-day public comment period ending October 20. The proposal establishes a specialized issuance framework for investment contracts involving crypto assets, offering two registration exemptions: one allowing cumulative financing of up to $5 million over four years; the other, modeled after the current Regulation A framework, permitting financing of up to $75 million every 12 months, with two tiers applied.

Under both exemptions, issuers must provide principle-based narrative disclosures, while issuers under the second exemption are also required to submit financial statements and comply with ongoing reporting obligations. The proposal includes a conditional safe harbor clause that would classify crypto assets as not constituting 'investment contracts' if certain conditions are met, thereby removing them from the definition of 'securities' under securities law.