SEC Rule to Streamline Crypto Fundraising

The SEC Wants to Make It Easier to Raise Money in Crypto

A newly proposed SEC rule would let crypto startups raise capital without triggering securities registration requirements. The agency proposed a rule that would let companies sell digital assets without registering them as securities, as long as they stay under certain limits.

The rule has two tracks. A company could sell up to $5 million in digital assets over a four-year period, or up to $75 million over 12 months. The bigger exemption demands more: firms must submit financial records and fulfill recurring reporting obligations, all detailed in a proposal that runs more than 400 pages.

SEC Chairman Paul Atkins framed it as answering a question that has puzzled the blockchain world for years. "How can I raise capital to develop a crypto asset while I am still working to develop the network where it will be used," he posted on X.

What's in the Fine Print

The proposal also includes a safe harbor. If a company has fulfilled or given up on all the major management tasks it promised investors, its digital asset could fall outside the SEC's "investment contract" definition. That would potentially put it under the oversight of a different regulator instead.