SEC Proposes Rules for Public Token Fundraising

The US Securities and Exchange Commission (SEC) has proposed new rules to allow crypto projects to raise up to $75 million annually without full registration. This move could reopen public token fundraising, which was effectively pushed offshore by years of enforcement actions.

The proposal includes two exemptions: a startup exemption allowing projects to raise up to $5 million over four years and a larger exemption for issuers to collect as much as $75 million during any 12-month period. Both routes would require issuers to provide disclosures to investors, while the larger exemption would also need to provide financial statements and meet ongoing reporting requirements.

However, investor demand for new tokens has fallen sharply since the ICO boom of 2017-2018. Capital has concentrated around major crypto assets, speculative markets, artificial intelligence-linked stocks, and other areas. Venture investors say clearer rules could help legitimate token projects raise capital in the US, but fundraising is no longer the industry's most pressing regulatory issue.