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SEC Proposes $75M Crypto Offering Exemption in New Rules
SEC's Regulation Crypto Assets proposal includes a $75M offering exemption and safe harbor for qualifying crypto assets, giving startups a path to raise capital without full registration.
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The Securities and Exchange Commission (SEC) proposed new rules Tuesday that would let certain crypto projects raise capital without registering offerings under federal securities law. A key provision would exempt offerings of up to $75 million over 12 months.
The proposal, called "Regulation Crypto Assets," would create a tailored framework for investment contracts involving crypto assets. It arrives as Congress continues negotiating the broader federal framework for digital assets.
The plan includes two registration exemptions under the Securities Act of 1933. The first would let eligible issuers offer up to $5 million in securities over four years. The second would permit offerings of up to $75 million in any 12-month period. Both come with conditions and disclosure requirements.
Issuers would need to provide principles-based disclosures and remain subject to antifraud and antimanipulation provisions. The larger exemption requires additional disclosures, including financial statements and information about the issuer's financial condition.