SEC opens door to day-one crypto insider sales that Senate draft would block

The SEC's new crypto fundraising proposal deliberately treats tokens as free to trade as soon as a buyer acquires them, unless the issuer or another law says otherwise.Insiders typically know more than the public while a token project is still being built, and their incentives do not always line up with everyone else's.The Senate's July 22 CLARITY draft would force insiders to hold a token for a full year before its network clears a specific control test, then six more months once it does. The bill also limits how much they can sell, but the SEC's proposal skips those requirements.QuestionSEC Regulation Crypto Assets proposalSenate July 22 CLARITY draftAre tokens freely tradable after purchase?Generally yes, unless another restriction appliesNot for related persons covered by the lockup rulesIs there a mandatory insider holding period?NoYesBefore network control certificationNo federal time-based lockup12-month minimum holding periodAfter certificationNo federal time-based lockup6-month minimum holding periodMain investor protection toolDisclosureMandatory holding period plus volume limitsCore philosophyLet buyers price disclosed insider riskForce insiders to stay economically expo...