SEC Unveils Proposal for $75M Crypto Fundraising Exemptions

The U.S. Securities and Exchange Commission (SEC) has proposed Regulation Crypto Assets to create a separate securities regulation regime for specific crypto asset businesses.

The proposal aims to provide better avenues for capital-raising for issuers of cryptocurrencies while retaining federal investor protections.

The SEC's proposed framework introduces two exemptions from registration requirements under the Securities Act of 1933. The first would allow an eligible issuer to conduct offerings of up to $5 million over a four-year period, while the second would permit up to $75 million in total offerings in any 12-month period.

A larger exemption would come with extra obligations such as periodic reporting and disclosure of information in financial statements. Both exemptions would mandate investors with principals-based narrative disclosures.