SEC Proposes New Regulatory Guidelines for Token Issuers

The U.S. Securities and Exchange Commission (SEC) has proposed new regulatory guidelines for token issuers, which could make public fundraising in the United States more feasible.

The proposal introduces exemptions for certain 'investment contract' offerings involving crypto assets, including a larger exemption allowing qualifying issuers to raise up to $75 million in any 12-month period. This cap is designed to be reset on a rolling schedule rather than tied to a single lifecycle event, which could enable projects to return to the market multiple times.

However, experts caution that even with these new exemptions, the proposal is unlikely to recreate the unchecked ICO environment of 2017. According to Lilya Tessler, partner and leader of Sidley's Global FinTech and Blockchain group, any additional fundraising would require a new offering statement and an SEC staff review.