US SEC Proposes New Crypto Regulation Framework for US Token Fundraising
Key Insights:
- Crypto regulation proposal would create two routes for certain token investment contracts.
- Startup issuers could raise $5 million once across a four-year period.
- Larger qualifying offerings could reach $75 million per 12-month period.
The US SEC has proposed a crypto regulation framework for fundraising tied to certain crypto assets. Regulation Crypto Assets would create two registration exemptions under the Securities Act of 1933. One route covers startup offerings of up to $5 million over four years. The other allows qualifying issuers to raise up to $75 million within each 12-month period.
The plan also introduces a conditional safe harbor after an issuer completes or permanently ends promised managerial work. The crypto news concerns a proposal, not a final rule. The public may comment on every provision for 60 days after Federal Register publication.
Crypto Regulation Proposal Creates Two Funding Routes
The startup exemption would be available once and cap sales at $5 million across four years. Issuers would file notices when entering and leaving that period. They must also give investors principles-based narrative disclosures while relying on the exemption.
