SEC Proposes First Crypto-Specific Fundraising Framework, With $75M Exemption

The proposal would include a one-time “startup exemption” for offerings up to $5 million over four years and a “fundraising exemption” for up to $75 million per 12-month period.

• The SEC announced “Regulation Crypto Assets,” which would establish a specialized regime for securities offerings of certain investment contracts. 
• This would involve crypto assets and be the first dedicated federal framework for crypto fundraising.
• “This is the most historic step yet to modernize federal securities regulations for crypto assets,” said SEC Chairman Paul Atkins.

The US Securities and Exchange Commission (SEC) on Tuesday proposed the first permanent federal rule for digital asset fundraising. This framework would allow crypto projects to raise up to $75 million without full securities registration.

The proposal, called “Regulation Crypto Assets,” would create two exemptions from the registration requirements of the Securities Act of 1933 for certain investment contracts that involve crypto assets, the SEC announced. A “startup exemption” would allow for one-time offerings up to $5 million over four years, and a “fundraising exemption” would allow offerings up to $75 million in any 12 months.

What The Rules Would Require