SEC's New Crypto Rule Lets Tokens Raise $75 Million And Eventually Stop Being Securities

The SEC’s proposal makes it easier for crypto projects to raise money in the US and sets out a safe harbour under which a token can stop being treated as part of an investment contract.

The US Securities and Exchange Commission proposed Regulation Crypto Assets on 18 August, offering crypto issuers two new exemptions from standard securities registration.

The first caps fundraising at $5 million over four years, the second allows up to $75 million in any 12 months. Both require issuers to give investors plain-language disclosures about the offering, while the larger exemption also requires financial statements and ongoing reporting after the sale.

The rule offers “clear pathways to raise capital under the federal securities laws,” SEC Chairman Paul Atkins said in the announcement.

With our new proposal, the SEC is taking the most historic step yet to modernize federal securities regulations for crypto assets.As the Crypto Capital of the World, the U.S. must and will lead. Regulation Crypto Assets will ensure that we do. 🇺🇸 pic.twitter.com/z0MmDF4doV

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