More than 100 letters in, comments on the SEC's token rule are due today, and five law scholars want it re-proposed

The public comment window on the SEC's plan for token offerings ends on Tuesday, and the letters show a split. Comments on Regulation Crypto Assets, proposed on August 18, were due October 20, and more than 100 submissions had been filed, The Block reported.

The proposal would create two registration exemptions: one for offerings of up to $5 million over four years, and one of up to $75 million in a 12-month period, with principles-based disclosure, per the SEC. It also sets conditions under which a token would stop being treated as part of an investment contract. Antifraud rules would still apply.

Five securities law scholars urged the SEC to re-propose the rule, questioning the different treatment of crypto investment contracts and the case for principles-based disclosure, TokenPost reported. Anthony Scaramucci of SkyBridge Capital supported the plan but asked for clearer safe-harbor criteria. The Alternative Investment Management Association asked for disclosures on investors' legal rights and risks, saying issuers "should also distinguish utility or economic exposure from ownership, redemption, cash-flow and contractual rights," per The Block. The Hyperliquid Policy Center urged adoption with changes, including stating that airdrops given for nothing in return do not involve an investment of money.

The Block gave no timeline for a final rule, which may differ from the proposal.