SEC Proposes New Rules for Crypto Assets, But Will It Spark a New ICO Boom?

The SEC has proposed new rules for crypto assets that could make public token sales easier in the US. The proposal would allow issuers to raise up to $75 million during any 12-month period, potentially allowing projects to return to investors to raise more funds year after year as they build out their networks.

Lee Reiners, a Duke University lecturing fellow and financial regulation expert, doesn't think this will bring back the ICO boom of 2017. He says it's unlikely to produce a return to the ICO frenzy because fundraising markets are shaped by investor appetite, token economics, liquidity, custody, and reputational damage from previous ICOs.

Projects could potentially raise $75 million every year under the proposed rules. However, each raise would require filing a new offering statement and undergoing an SEC staff review, as well as keeping annual and semiannual reports on file.