SEC Proposes New Crypto Rules Allowing Larger Exemptions from Registration Requirements

The U.S. Securities and Exchange Commission (SEC) has proposed new rules for certain crypto assets, aiming to provide clearer pathways for entrepreneurs to raise capital under federal securities laws.

The proposal introduces exemptions from registration requirements for investment contracts involving crypto assets, allowing eligible issuers to raise up to $5 million over four years or up to $75 million in 12 months.

The SEC also proposed a conditional safe harbor related to the definition of an 'investment contract' under the Securities Act and the Securities Exchange Act. This safe harbor could provide greater clarity once an issuer has completed or permanently ceased its essential managerial efforts.