SEC Proposes Easing Crypto Fundraising Rules with Annual Cap of $75 Million
The US Securities and Exchange Commission (SEC) has proposed easing fundraising rules for cryptocurrency issuers. The move aims to create separate pathways for crypto businesses, tailored to their unique needs rather than applying existing securities laws without modification.
The proposal, outlined by SEC Commissioner Hester Peirce on August 18, includes two options: a startup exemption and a fundraising exemption. Under the startup exemption, crypto businesses can raise up to $5 million over four years. The fundraising exemption would allow issuers to raise as much as $75 million every 12 months.
Issuers would be required to disclose financial statements and provide ongoing disclosures to ensure investors have access to accurate information. Existing federal securities laws, including bans on fraud and market manipulation, remain in force.