SEC Proposes Rules to Ease Crypto Fundraising with $75 Million Exemption
The Securities and Exchange Commission (SEC) has proposed rules to ease fundraising for certain cryptocurrency companies. The proposal includes two exemptions that would allow crypto companies to raise capital without going through the traditional securities registration process.
According to SEC Chair Paul Atkins, the proposed rulemaking is essential to providing a framework for crypto asset fundraising and ensuring America remains the world's premier destination to innovate and raise capital.
The first exemption would permit a one-time offering of up to $5 million over four years, while the second would allow companies to raise up to $75 million in any 12-month period. Both exemptions require issuers to provide disclosures to investors and are subject to ongoing reporting requirements.
Atkins emphasized that the SEC supports passage of the CLARITY Act, a comprehensive legal framework for the entire crypto market, which is currently being advanced by Congress. He stated, 'The work before us is too important.' The public comment period will be open for 60 days after the proposed rule is published in the Federal Register.