SEC Proposes Two-Tiered Crypto Fundraising Exemptions

The US Securities and Exchange Commission (SEC) has proposed a new framework for crypto fundraising exemptions. The proposal, called Regulation Crypto Assets, aims to lower regulatory barriers for digital asset issuers while maintaining investor protections.

Under the proposal, issuers can choose between two exemption tracks based on the scale of their fundraising efforts. Smaller projects would be permitted to raise up to $5 million over four years without complex disclosure procedures, easing entry for early-stage ventures. Larger offerings could qualify for an exemption of up to $75 million per year, provided they meet stricter requirements.

The proposal also includes a conditional safe harbor that would allow qualifying offerings to avoid treatment as strict securities-law investment contracts. Additionally, a preemption measure aims to reduce differences among state-level rules, potentially simplifying compliance for issuers operating across multiple jurisdictions.