SEC Proposes New Rules for Crypto Assets, Potentially Boosting Public Token Sales

The US Securities and Exchange Commission (SEC) has proposed new rules for cryptocurrency assets, potentially making public token sales easier in the United States. The proposal would allow qualifying issuers to raise up to $75 million during any 12-month period, with the possibility of serial raises.

Lee Reiners, a Duke University lecturing fellow and financial regulation expert, does not expect the new rules to bring back the ICO boom of 2017. 'My initial view is that the $75 million exemption could make public token offerings more feasible, but it is unlikely to produce a return to the ICO boom,' he said.

The SEC's proposal creates two exemptions for certain investment contracts involving crypto assets: one-time exemption for startups with offerings of up to $5 million over four years and a larger fundraising exemption allowing up to $75 million in each 12-month period. Drew Hinkes, partner at Winston & Strawn, noted that the 12-month limitation would allow for 'serial raises' of $75 million every 12 months.