SEC Proposes Crypto Fundraising Framework to Revive Compliant Asset Creation
The US Securities and Exchange Commission (SEC) has proposed a new regulatory framework for crypto fundraising, aiming to revive compliant asset creation in the country. The proposal, known as Regulation Crypto Assets, creates two exemptions for startups and a safe harbor for tokens that have fulfilled their development promises.
The startup exemption allows projects to raise up to $5 million over four years without filing financial statements, while the fundraising exemption has Tier 1 and Tier 2 caps of $20 million and $75 million respectively within 12 months. Both tiers require issuers to file Form 1-CRYPTO with the SEC's EDGAR system and disclose their financial condition.
The safe harbor allows tokens to exit securities regulation once a project has completed its core managerial work or abandoned development promises without making new commitments. This is seen as a direct response to the collapse of FTX in 2022, which effectively shut down compliant fundraising pathways in the US.