SEC Proposes Framework Allowing Crypto Projects to Raise Up to $75 Million

The Securities and Exchange Commission (SEC) has proposed Regulation Crypto Assets, a framework that would allow eligible projects to raise up to $75 million in any 12-month period without registering the offering under the Securities Act.

The proposal includes two exemptions from the Section 5 registration requirements for certain investment contracts involving crypto assets. The smaller route would cap offerings at $5 million over four years, while the larger fundraising exemption would permit offerings of up to $75 million during each 12-month period.

Crypto thought leaders such as Deepankar Kapoor believe the framework could unlock a new phase of positive mature growth for the industry. 'A defined $75 million tier with real financial reporting attached means we should see a wave of well-disclosed, legitimate projects come to market over the next year or so.'

The proposal also creates a conditional safe harbor under which a crypto asset could be deemed not subject to an investment contract if specified conditions are met.