Louis Froelich Discusses SEC’s Proposed Crypto Regulatory Framework

Two media outlets recently quoted Womble Bond Dickinson Partner Louis Froelich in coverage of the Securities and Exchange Commission’s Regulation Crypto Assets proposal.

Earlier this month, the SEC proposed a new regulatory framework designed for covered investment contracts involving crypto assets that are not themselves securities. The proposal aims to facilitate capital formation, support innovation in crypto markets, and provide investor protections while offering clear pathways for issuers to raise funds under federal securities laws.

The proposed Clarity Act legislation also seeks to introduce a framework for crypto, but it has remained stalled in Congress.

Froelich said, “This is a very direct response to the stuttering of the Clarity Act. The SEC is going to drop thoughtful, direct regulation to enable digital assets to continue to flourish.”

In the previous administration, Froelich said companies launched crypto offerings outside of the U.S. “because they couldn’t legally raise money in a way that suited the nature of their business.” The Regulation Crypto Assets proposal aims to address that issue, he said.

Click here to read Froelich’s comments in Banking Dive. The piece was also republished in Yahoo Finance.