SEC Unveils Proposed Regulation Crypto Assets Package: A New Path for Issuers

The Securities and Exchange Commission (SEC) has released its proposed Regulation Crypto Assets package, aiming to provide a clear path for crypto-asset issuers to raise capital through covered investment contracts without triggering full Securities Act registration.

The proposal creates two new registration exemptions: the startup exemption and the fundraising exemption. The startup exemption caps fundraising at $20 million over a single four-year window, while the fundraising exemption offers Tier 1 and Tier 2 paths with distinct assurance requirements.

The SEC emphasizes that qualifying for either exemption does not reduce antifraud enforcement exposure, and the agency has preserved its full civil arsenal, including Section 20 actions for noncompliance with exemption conditions.