SEC Proposal Opens Door for US Startups to Raise Up to $75 Million with Token Offerings

The US Securities and Exchange Commission (SEC) has proposed a new rule that would allow American startups to raise up to $75 million through token offerings. This move aims to provide a clear path for crypto companies to fund their businesses under securities laws, promoting innovation in the US digital-asset industry.

Under the proposed rules, companies seeking smaller amounts of funding could raise up to $5 million through a token sale once over a four-year period. Those looking for larger sums could raise as much as $75 million in a one-year period, but would need to disclose details including their business operations and plans for using the proceeds.

The proposal also requires companies raising up to $75 million a year to submit financial statements and continue reporting on their management status afterward. This approach reduces the burdensome securities-registration process required for an initial public offering while still requiring necessary disclosures.