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SEC proposes $75M crypto offering exemption with path to exit securities rules
The SEC's proposed Regulation Crypto Assets lets projects raise up to $75M without full registration and later separate tokens from securities exposure.
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WASHINGTON–The Securities and Exchange Commission has proposed new fundraising rules for crypto projects. One option would allow eligible issuers to raise up to $75 million without completing a full SEC registration.
The proposal goes beyond fundraising. It sets out how a token could eventually be separated from the securities offering used to finance its development.
Proposed Regulation Crypto Assets contains three routes for projects at different stages.
A startup could raise up to $5 million over four years through a one-time exemption. It would need to disclose details about the project and its leadership, though financial statements would not be required.
Two larger routes would cover offerings of up to $20 million and $75 million within 12 months. The disclosure burden increases with the amount raised. A project that wants the $75 million exemption would need audited financial statements.
Public advertising and sales would be allowed under the proposal. There are limits on how much some retail investors can invest.