New SEC rules could allow startups to raise $75 million per year with rolling exemptions, easing prior restrictions on crypto offerings.
The SEC proposed new regulations allowing crypto startups to raise up to $5 million over four years under a one-time exemption. A second exemption permits up to $75 million annually, modeled after Regulation A, with disclosure and reporting requirements.
The $75 million limit resets every 12 months, enabling projects to conduct serial raises if treated as distinct offerings. Each subsequent raise requires a new filing and SEC review, along with ongoing reporting obligations. Issuers must disclose prior fundraising to verify compliance with the cap.
The proposal marks a shift from current rules, potentially enabling projects to raise up to $225 million over three years. Legal experts note the process is not automatic but offers greater flexibility than existing frameworks.