US Crypto Regulation Mapped 1️⃣ Payment Stablecoins → GENIUS Act (already law) - Sets the rules for payment stablecoins - Requires 1:1 reserves backing each coin - Guarantees redemption rights for holders 2️⃣ Token Fundraising / Securities Law → Regulation Crypto Assets (proposed SEC rule, not final) Core question: Is the token itself a security? YES → it falls under the existing SEC securities framework NO → next question: How was it sold? Does the offering satisfy the Howey test? ✅ Satisfies Howey → it is an investment contract → treated by SEC as a "covered investment contract" → Regulation Crypto Assets applies ❌ Does not satisfy Howey → no investment contract, so Regulation Crypto Assets is generally not needed (note: other laws can still apply) If Regulation Crypto Assets applies, there are three exemption paths: A. Startup exemption: raise up to $5M over 4 years + narrative disclosures B. Fundraising exemption: raise up to $75M per 12 months + narrative disclosures, financial statements, and ongoing reporting C. Investment contract safe harbor: an independent path where, once managerial efforts are completed or ceased and a transition report is filed, the investment contract is deemed to end and the token is no longer subject to it 3️⃣ Crypto Market Structure → CLARITY Act (bill, not yet law) Answers "who regulates what" by splitting jurisdiction: - SEC: digital securities, investment contracts, securities offerings - CFTC: digital commodities, spot market oversight, digital commodity exchanges, brokers, and dealers $BTC $ETH