SEC Unveils ‘Regulation Crypto Assets’: New $5M and $75M Path for Token Offering

The Securities and Exchange Commission (SEC) proposed a new rule on August 18 that would let crypto companies raise money through two exemptions from standard securities registration.

The plan, called “Regulation Crypto Assets,” sets one path capped at $5 million every four years and another at $75 million per year, alongside a safe harbor that could pull certain crypto assets outside the legal definition of a security.

Two Paths to Raise Capital

Under the proposal, the smaller exemption is a one-time offering worth up to $5 million over a four-year period. Issuers using it would need to give investors narrative disclosures about the offering, written in plain language rather than the dense form typical of a full registration statement, and the requirements stay fairly informal by comparison.

The larger exemption goes up to $75 million in any 12-month stretch, but it comes with more paperwork: financial statements and ongoing reporting obligations for as long as a company keeps raising money under it.

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