SEC Proposes Path for Crypto Projects to Raise $75 Million Without Securities Label

The US Securities and Exchange Commission (SEC) has proposed a new regulation to help cryptocurrency projects raise funds without being classified as securities. The proposal, called Regulation Crypto Assets, aims to provide a clear path for token projects to raise up to $75 million under crypto-specific rules.

Currently, the SEC views token sales as investment contracts, which can be considered securities under federal law. This has led to many projects struggling to navigate the complex regulatory landscape and avoid being classified as securities.

The proposed regulation would establish three lanes for token financing: a small startup exemption and two larger fundraising exemptions with tiers of $20 million and $75 million. The regulation would also require issuers to file regular reports, including annual, semiannual, and current reports, to ensure transparency and accountability.