SEC Proposes Exemptions for Token Issuers to Raise Up to $75 Million

The Securities and Exchange Commission (SEC) has proposed its first major set of crypto-specific securities rules, offering token issuers exemptions to raise up to $75 million in a 12-month period without registering as traditional securities.

Under the proposal, two exemptions would be available: one allowing issuers to issue up to $5 million in tokens during a four-year period and another permitting offerings of as much as $75 million every 12 months.

The safe harbor provision would establish conditions under which an asset wouldn't be considered an investment contract, aligning with the industry's position that many crypto assets shouldn't automatically fall inside that framework.

SEC Chair Paul Atkins has emphasized the need for rules designed around how digital assets function rather than enforcing existing securities law. The proposal marks a significant change in posture from the previous SEC, which established boundaries through enforcement actions.