Crypto-Linked Stocks Climb After SEC Pens Rules for Raising Capital

Dow Jones01:35

Shares of cryptocurrency-linked companies followed Bitcoin higher after U.S. regulators proposed a framework to make it easier for crypto firms to raise capital.

Coinbase's stock rose 11% to $162.80 on Wednesday, and shares of Strategy were up 12% at $103.95. Mara Holdings shares were up 7.5% at $9.64 and Bitdeer Technologies Group stock gained 9% at $9.82. Bitcoin is up 5% at more than $68,000.

The Securities and Exchange Commission drew up new rules released on Tuesday outlining how a crypto company can raise capital under federal securities law. The agency would also seek to make a conditional safe harbor for tokens to stop being regulated as a securities.

Under this new rulebook, firms could seek a one-time exemption that would permit offerings of up to $5 million in a four-year period, or an exemption that allows offerings of up to $75 million every 12 months.

The proposal builds on guidance the SEC released earlier this year, and comes as related legislation fails to move forward in Congress.

The public comment period for the proposal will run for 60 days.

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