SEC Softens Stance on ICOs Amid Cooling Investor Demand
The US Securities and Exchange Commission has proposed an exemptive framework for initial coin offerings (ICOs), aiming to ease rules for token issuance. This move marks a shift from the SEC's hard-line stance following the 2017 ICO boom.
Under the proposal, qualifying projects can sell tokens publicly without full securities registration, with early-stage projects allowed to raise up to $5 million annually and larger projects capped at $75 million. The plan also includes provisions to reduce regulatory uncertainty by allowing investment-contract relationships formed during a token sale to end if an issuer completes or permanently stops promised development and management activities.
Industry experts, however, remain skeptical about the proposal's potential impact. Tom Schmidt, a general partner at Dragonfly, noted that the plan would have been more useful if it had been introduced earlier, as market-structure issues now take priority over fundraising. Carlos Guzman, a research analyst at GSR, emphasized that ICOs in 2026 differ significantly from those in 2018, with investors no longer willing to back projects based solely on white papers and ideas.