SEC Proposes Framework for Crypto Companies to Raise Up to $75 Million

The US Securities and Exchange Commission (SEC) has proposed a new framework to make it easier for some crypto companies to raise money without going through the full securities registration process. The proposal, known as 'Regulation Crypto Assets,' aims to create rules specifically designed for the digital asset market while retaining investor protections.

The SEC is seeking public comment on the proposal until October 20, 2026. If adopted, eligible issuers could raise up to $75 million in a 12-month period through a new fundraising exemption. This larger exemption would be intended for projects that need more substantial funding than the startup route, which allows companies to raise up to $5 million over four years.

The SEC proposal includes two separate exemptions: a startup exemption and the proposed fundraising exemption allowing companies to raise up to $75 million in any 12-month period. Companies using either exemption would still have disclosure obligations. Issuers using the $75 million route would face additional requirements, including financial statements and continuing reporting obligations.