HUGE NEWS! SEC RELEASES NEW CRYPTO REGULATION! CITI BANK BITCOIN CUSTODY & RIPPLE XRP KOREA BANK!

**Tony Edward** (0:04)
Hey folks, welcome into the Thinking Crypto Podcast, your home for cryptocurrency news and interviews. I'm your host Tony Edward. On your way in, please hit that subscribe button, as well as a thumbs up button and leave a comment below. If you're listening on a podcast platform such as Spotify or Apple, please be sure to follow and leave a five-star rating. All right, folks, we have huge news coming out of the SEC. Today, they proposed some new rules, one of which we've been waiting for for a long time. It's called Regulation Crypto Assets, also known as Reg Crypto. I've covered this in the past. I've also had guests on the podcast who have talked about the importance of this. And the SEC said that this would create a clear and fit-for-purpose framework for certain investment contracts involving crypto assets. SEC Chair Paul Atkins tweeted out, As Congress works to establish a lasting regulatory framework, our new proposal Regulation Crypto Assets seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws. So what is this? It's essentially guidance on token issuance to raise capital. So this would give the guidance to everyone. What can you do when you want to launch a token, right? So this goes for institutions, it goes for individuals, entrepreneurs, and much more. This is significant. It's what we've been waiting for for a long time. Even though the SEC gave some guidance on specific crypto assets, this has broader reach. It just says anything that may be created over time, here are the rules. So huge, huge guidance here. And if you recall, I had interviewed Tiffany Smith, Partner and Co-Chair of the Blockchain and Cryptocurrency Working Group at WilmerHale, which is a law firm, and we did a deep dive into this. So I'll put a link in the description to that interview. She covered it in detail on the importance, the impact this would have, and I hope to have her back on soon to talk about this new guidance. This is really big. So some of the details of this proposal includes, it allows certain offerings of up to $5 million over four years, or $75 million annually without SEC registration. So again, this is the TLDR. We got to go through the fine details, but just so you know the major takeaways. Number two, it creates a conditional safe harbor for crypto assets once an issuer's essential managerial efforts have ended. So the key word there is safe harbor. Shout out to SEC Commissioner Hester Peirce, who was the creator of this back in the day, years ago, right? And even Gary Gensler and all these guys, and they're the anti crypto army era, they ignored it. But now it's come to fruition. So this is really great. Number three, preempt certain state securities registration and requirements. It now enters a 60-day common period. So we're going to have to wait and see what the industry has to say, different legal experts and much more. So once again, I'll get those folks on the podcast to break this all down and to see what folks have to say about this. And if it's good or not good or it needs some additional information, but you can see that the agencies like the SEC and CFTC are going full force here to provide the guidance, to provide the rules of the road. And even though the Clarity Act has not passed yet, the builders and entrepreneurs out there, what they want is the guidance from the regulatory agencies because these are the guys that can issue the lawsuits, who can enforce the law, right? So if you have the guidance from essentially the policemen, right, who are out there, you know what to operate, what to do, what not to do. And obviously this SEC and the CFTC and the whole government administration is more friendlier to crypto. It's not like the Gary Gensler days. So this is really great. It will allow for more innovation, building, token issuance and a whole lot more. So really, really great stuff here. Now some additional context. It is being reported by Eleanor Terry.
She said the SEC approved the proposal through a seretium vote. I hope I'm saying that right. Meaning commissioners voted individually outside a public meeting, according to an SEC spokesperson. The commission had been scheduled to consider regulation crypto assets at an open meeting last Friday, but abruptly canceled a meeting citing an unforeseen scheduling issue. So we don't know what caused the conflict there with that meeting that was supposed to take place last Friday, but who cares? The point is they put out the rules and that's the meat and potatoes. That's what we want to see, right? We want to see the tangible items here. So let's see again what the industry thinks. Now on the other side of the token, the CFTC Chair Mike Seelig put out a video today highlighting that CFTC is ready to move forward as well. And we know the CFTC and the SEC are working together on their Project Crypto.