SEC Proposes Framework for Crypto Fundraising

The U.S. Securities and Exchange Commission (SEC) has proposed a new framework for crypto fundraising, dubbed 'Regulation Crypto Assets.' The framework aims to bring innovation onshore and give crypto entrepreneurs a tailored rulebook.

The proposal introduces two exemptions from Securities Act registration requirements: one for offerings up to $5 million over four years, and another for offerings up to $75 million within any 12-month period. Both exemptions come with specific disclosure and reporting requirements.

The SEC Chairman Paul Atkins framed the goal of the proposal as bringing innovation onshore, reducing incentives for issuers to operate offshore, and giving crypto entrepreneurs a fit-for-purpose rulebook.