SEC Proposes Framework Allowing Crypto Projects to Raise Up to $75 Million Without Full Registration

The US Securities and Exchange Commission (SEC) has proposed a new framework for crypto token issuers to raise funds without undergoing full securities registration. The proposal, called Regulation Crypto Assets, would allow qualifying projects to raise up to $75 million in a single 12-month period.

The SEC's chairman, Paul Atkins, says this is the agency's first attempt at building a purpose-built fundraising lane for token issuers. However, it's worth noting that this is a proposed rule, not a final one, and it arrives while Congress still hasn't passed the CLARITY Act market-structure bill.

The proposal includes two offering exemptions: a smaller 'startup exemption' allowing up to $5 million in token sales over four years with lighter disclosure requirements, and a larger 'fundraising exemption' allowing up to $75 million per 12-month period. Issuers using this tier would have to provide financial-condition disclosures and ongoing reporting obligations.