Proposal introduces exemptions for crypto projects to raise up to $75M annually without accredited-investor requirements under certain conditions.
The SEC proposed a new framework allowing crypto projects to raise up to $75M annually through a tiered exemption system. The startup exemption permits $5M over four years with no accredited-investor requirement, while the fundraising exemption splits into $20M and $75M tiers, with Tier 2 requiring audited financials and ongoing reporting.
The proposal formalizes a safe harbor for tokens to shed ‘investment contract’ status once project work is completed or abandoned. It also preempts state-level securities registration for these offerings and certain secondary trades. The rule does not address tokenized securities or registered offerings for digital assets.
The $75M annual cap and lack of resale lockups mark a shift from prior regulatory approaches, though the SEC delayed a separate tokenization exemption expected alongside the proposal.