The SEC proposed rules allowing crypto projects to raise funds without full registration, easing compliance for startups and larger issuers.
The Securities and Exchange Commission proposed exemptions Tuesday permitting crypto projects to raise up to $5 million over four years or $75 million annually without full securities registration. The rules, dubbed ‘Regulation Crypto Assets,’ require disclosures and ongoing reporting but exempt issuers from certain registration requirements.
The proposal follows the cancellation of a prior meeting on the framework last week, amid reported pressure from Wall Street and the White House. It arrives as the crypto industry faces regulatory uncertainty after the Clarity Act, a bill aimed at legalizing most crypto activity, stalled in Congress.
Under the new exemptions, federal antifraud and antimanipulation rules remain in effect, while a safe harbor provision could allow crypto assets to separate from their initial investment contracts.