SEC Proposes New Crypto Rules with Path for $75 Million Offerings

The Securities and Exchange Commission (SEC) has proposed new rules for cryptocurrency investment contracts. The plan aims to reduce fundraising barriers, strengthen investor safeguards, and keep crypto innovation in the US.

Under the proposal, startups could raise up to $5 million over four years through a one-time exemption. Eligible issuers could also raise up to $75 million in 12 months through a separate exemption modeled partly on Regulation A.

The plan introduces a conditional safe harbor and federal disclosure requirements for issuers. To qualify, they would need to provide investors with narrative disclosures and public offering materials. Tier 2 issuers would require audited financial statements, and all issuers would remain subject to federal antifraud and antimanipulation provisions.