SEC Proposes Crypto Fundraising Exemptions Amid Clarity Act Uncertainty

The Securities and Exchange Commission (SEC) has proposed new rules allowing crypto projects to raise funds without full securities registration. The proposal, titled 'Regulation Crypto Assets,' would grant exemptions for digital token offerings of up to $5 million over four years or $75 million annually with certain conditions.

The measures come after the SEC canceled a meeting on the framework last week amid reported pressure from Wall Street and the White House. SEC Commissioner Hester Peirce acknowledged that the proposed exemptions would not cover every type of crypto project, calling for feedback from the industry to tailor the rules to changing market developments.

The proposal also includes a conditional safe harbor allowing an issuer to 'delink' a crypto asset from the investment contract through which it was sold. This could enable a token initially tied to a securities transaction to separate from that contract if the issuer meets the SEC's conditions.