SEC Proposes Framework for US Crypto Fundraising with New Regulation

The US Securities and Exchange Commission (SEC) has proposed Regulation Crypto Assets, a new framework for crypto fundraising in the US. The proposal would allow certain offerings of up to $5 million over four years or $75 million annually without SEC registration. This development comes after the long-standing court case between the SEC and Ripple over XRP.

The SEC sued Ripple in 2020, arguing that its XRP sales amounted to unregistered securities offerings. Judge Analisa Torres ruled in 2023 that XRP itself was not a security, but certain institutional sales crossed the line. The proposed safe harbor would supply the missing mechanism for issuers to get out of securities status without going through court.

The proposal creates two exemptions from Securities Act registration: one-time options covering raises of up to $5 million across four years and a second track allowing up to $75 million every 12 months. Both routes require plain narrative disclosures for investors, with projects using the larger exemption also publishing financial statements and filing ongoing reports.