SEC Proposes Exemption Framework for Crypto Asset Investment Contracts

The US Securities and Exchange Commission (SEC) has proposed an exemption framework for certain crypto-asset investment contracts from registration requirements under federal securities laws.

Under the proposal, smaller projects can raise up to $5 million over four years without going through complex disclosure procedures, while larger fundraising efforts can qualify for an exemption from registration for up to $75 million a year if issuers meet stricter requirements.

The proposal also includes a conditional safe harbor for offerings that meet specified requirements, allowing them to avoid regulations tied to investment contracts under securities law. It aims to reduce differences in state-level oversight by giving federal law priority.