Crypto● Neutral
SEC proposes crypto fundraising rules after cancelling meeting
The SEC proposed two exemptions allowing crypto companies to raise up to $75M without full registration, plus a safe harbor. Chair Atkins called it central to the agency's agenda.
Continue with
The Securities and Exchange Commission kicked off rulemaking Tuesday to ease how crypto companies raise money, days after the agency abruptly canceled a meeting where it was expected to consider the proposal.
The SEC canceled the Friday meeting because of an "unforeseen scheduling issue" and said it would be rescheduled. The agency instead released the proposed rules two days later.
The proposal, called "Regulation Crypto Assets," includes two exemptions that let certain crypto companies raise capital without going through the full securities registration process. The first allows a one-time offering of up to $5 million over four years. The second permits raising up to $75 million in any 12-month period, with ongoing reporting requirements. Both require issuers to provide disclosures to investors.
The rules also include a conditional safe harbor that could let certain crypto assets fall outside the definition of a security if they meet specific requirements. They would also prevent states from imposing separate securities registration requirements on offerings that qualify for the federal exemptions.