SEC Proposes Exemptions for Crypto Fundraising

The U.S. Securities and Exchange Commission (SEC) has proposed a new framework to simplify fundraising for crypto projects. The framework, called Regulation Crypto Assets, would exempt certain digital asset issuers from securities registration requirements.

The proposal allows issuers to choose between two exemption tracks based on the scale of their fundraising efforts. Smaller projects can raise up to $5 million over four years without complex disclosure procedures, while larger offerings can qualify for an exemption of up to $75 million per year, provided they meet stricter requirements.

The framework also includes a conditional safe harbor that would allow qualifying offerings to avoid treatment as strict securities-law investment contracts. Additionally, the SEC has proposed a preemption measure to reduce differences among state-level rules, potentially simplifying compliance for issuers operating across multiple jurisdictions.