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The U.S. SEC proposes Reg Crypto: establishing a legal pathway for public offerings of certain tokens and the exit of investment contracts

The head of Galaxy Research posted on platform X stating that the U.S. Securities and Exchange Commission has proposed the Regulation Crypto Assets, abbreviated as Reg Crypto. This proposal aims to establish a legal pathway for the issuance of certain tokens to the U.S. public and to set up a mechanism for terminating investment contracts. The scope is limited to crypto assets that are not themselves securities but have been issued or sold as part of an investment contract; tokenized stocks, bonds, and arrangements that bundle tokens with equity or other securities are not included in the framework.The proposal sets four stages: financing, disclosure, construction, and exit. A one-time startup exemption allows issuers to raise up to $5 million over a maximum of four years; a higher exemption limit set by Regulation A allows for raising $20 million or $75 million within 12 months.Related financing must undergo qualification review by the U.S. Securities and Exchange Commission and continuous disclosure, with the investment cap for unaccredited investors being the greater of 10% of their annual income or net worth. Issuers must also disclose the token supply and release plan, minting and burning mechanisms, governance and smart contract permissions, source code, as well as project construction commitments and progress.When the issuer completes or permanently ceases relevant construction obligations, makes no new construction commitments, and submits a transition report, the related investment contracts will be deemed terminated, and the crypto assets will no longer be subject to securities laws under that investment contract. Issuers that do not use the above financing exemptions can also utilize this safe harbor. The U.S. Securities and Exchange Commission estimates that approximately 475 issuers will use the investment contract safe harbor each year, with about 130 issuers utilizing the two new exemptions. Qualified issuances may not be considered restricted securities and can be resold immediately without contractual restrictions.The proposal will also exclude initial offerings and certain secondary transactions within its scope from state registration and qualification requirements, but it does not involve exchanges, brokers, dealers, custodians, nor is it an independent innovation exemption for tokenized securities and on-chain transactions. The comment period is 60 days after publication in the Federal Register. U.S. Securities and Exchange Commission Chairman Paul Atkins and Commissioners Hester Peirce and Mark Uyeda have all issued supportive statements.

Coinbase CEO: The CLARITY Act is expected to receive 60 votes of support in the Senate on September 15

According to CoinDesk, Coinbase CEO Brian Armstrong stated that the U.S. "Digital Asset Market Structure Clarification Act" (CLARITY Act) is expected to receive over 60 votes of support in the U.S. Senate on September 15 and is confident about passing the first key procedural vote after returning to Congress.Brian Armstrong previously mentioned that the CLARITY Act has entered its final advancement stage, and the Senate procedural vote requires 60 votes of support to push the bill forward. The bill aims to establish a regulatory framework for digital assets in the U.S., clarifying the division of responsibilities between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the regulation of crypto assets. Armstrong believes that the clarification of U.S. crypto industry regulation is approaching, and whether the CLARITY Act ultimately passes or regulatory agencies advance through administrative rules, the market will welcome a clearer regulatory environment.Previously, U.S. President Trump also called on Congress to push the CLARITY Act through, believing that the bill is significant for establishing a regulatory system for digital assets and enhancing the competitiveness of the U.S. crypto industry. reuters.com However, the bill still faces controversy from some lawmakers regarding issues such as conflicts of interest and stablecoin regulation, and whether it can ultimately be successfully implemented still depends on subsequent negotiations in the Senate.

Star Bridge Capital's gold trading experienced abnormal liquidation, and the platform's Hong Kong office is empty

According to Caixin, Star Bridge Capital (SBCFX) experienced an abnormal liquidation incident in London gold trading. After the incident, the Hong Kong office of the platform was empty, and some investors faced huge losses. According to multiple investors, their automated trading in London gold (XAUUSD) derivatives through the Star Bridge Capital platform encountered extreme abnormal trading on the evening of August 19: the system automatically generated huge reverse short positions within just 1 to 3 seconds, followed by a rapid rise in international gold prices, leading to collective liquidations of accounts, with some accounts' funds reaching zero, and some even incurring negative debts.The so-called London gold liquidation refers to the risk of trading in the opposite direction of gold price movements, and due to leverage and other reasons, resulting in excessive losses, where the available margin in the investor's account is exhausted, falling below the maintenance margin ratio, leading to forced liquidation by the platform and total loss of principal.Affected investors estimate that this incident involves about 2,000 to 3,000 people, including a large number of mainland investors. Currently, some investors have reported to the Hong Kong police and requested the platform to refund 70% of the principal according to the previously promised "maximum loss of 30%" rule.Some investors claim that Star Bridge Capital offers leverage of up to 500 times, and some funds were deposited via USDT stablecoins, increasing the difficulty of tracking funds. Public information shows that Star Bridge Capital's business scope covers foreign exchange, commodities, indices, cryptocurrencies, etc., and it claims to be a licensed and compliant international trading platform.
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