SEC Proposes $75 Million Crypto Fundraising Exemption

The US Securities and Exchange Commission (SEC) has proposed a new framework to ease fundraising for some crypto companies. The proposal, called 'Regulation Crypto Assets,' aims to make it simpler for eligible issuers to raise up to $75 million in a 12-month period without going through the full securities registration process.

The SEC wants to establish a framework that reflects how the crypto market operates while retaining investor protections. Two fundraising routes are proposed: a startup exemption allowing eligible projects to raise up to $5 million over four years, and a larger exemption for more substantial funding needs.

Companies using either exemption would still have disclosure obligations, with issuers under the $75 million route facing additional requirements, including financial statements and continuing reporting obligations. The proposed exemptions also leave companies subject to federal securities laws covering fraud and market manipulation.