SEC Proposes New Framework for Regulating Token Fundraising in US

The US Securities and Exchange Commission (SEC) has proposed a new framework for regulating token fundraising in the country. The proposal, known as Regulation Crypto Assets, aims to create two registration exemptions under the Securities Act of 1933.

One exemption is for startup issuers, which would allow them to raise up to $5 million over four years. This exemption would be available only once and would require issuers to file notices when entering and leaving this period. They must also provide investors with principles-based narrative disclosures while relying on the exemption.

The other exemption is for larger qualifying offerings, which could reach up to $75 million within each 12-month period. Issuers using this exemption would be required to publicly file offering documents, including narrative disclosures and financial statements. Tier 2 statements would require an audit under the proposal.