SEC Proposes New Crypto Fundraising Rules with $75M Exemption

The US Securities and Exchange Commission (SEC) has proposed new rules for crypto fundraising, aiming to provide a clearer path for projects to raise capital without full securities registration.

The proposal, called 'Regulation Crypto Assets,' would establish exemptions from the registration requirements of the Securities Act of 1933. Two exemptions are proposed: one allowing issuers to offer up to $5 million in securities over four years, and another permitting offerings of up to $75 million during a 12-month period.

The larger exemption would require additional disclosure requirements, including financial statements and information about the issuer's financial condition. The proposal also creates a conditional safe harbor from the term 'investment contract' in the definition of a security.

The SEC's move comes as Congress continues to debate the CLARITY Act, legislation that would establish a broader federal framework for digital assets. If adopted, Regulation Crypto Assets could give crypto startups and projects a faster path to raise capital in the US without full securities registration.