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SEC Proposes $75M Crypto Fundraising Exemption
SEC's Reg Crypto Assets proposes $75M exemption and safe harbor for token projects. 60-day comment period begins. Industry awaits debate on key definitions.
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The SEC moved. On August 18, the agency proposed Regulation Crypto Assets, a framework that creates two new exemption tiers for token projects raising money.
The smaller tier caps fundraising at $5 million over four years. The larger one allows up to $75 million in any 12-month period, but issuers must provide financial statements and post-sale reports. The proposal also includes a safe harbor provision that addresses a long-running question: when does a token stop being a security?
Under the safe harbor, a token may no longer be considered a security if the project's managerial efforts promised to investors are fully completed or permanently abandoned, even if the token was initially sold as a security. The language leaves open what "completed" means in practice. The SEC has not yet detailed how that determination will be made.
The proposal builds on a taxonomy the SEC published in March 2026, which sorted crypto assets into five categories: digital commodities, collectibles, tools, payment stablecoins, and digital securities. The CFTC has agreed to regulate assets classified as digital commodities under the Commodity Exchange Act, providing a clearer jurisdictional line.