SEC Proposes Framework for Crypto Fundraising Exemptions

The US Securities and Exchange Commission (SEC) has proposed a new framework for cryptocurrency fundraising. The move aims to create clearer routes for crypto businesses to raise capital without facing traditional securities requirements.

The framework would establish exemptions covering token offerings of different sizes. Smaller issuers could receive a one-time exemption covering up to $5 million over four years, while larger companies could offer as much as $75 million during a 12-month period.

However, those issuers would still have financial disclosure and reporting requirements. The proposal also includes a safe harbor for certain crypto assets, which could prevent qualifying tokens from being classified as securities.