SEC proposes two-tier funding exemption for crypto projects, nearly half qualify under the $5 million cap

Odaily reported that among 3,244 crypto projects with funding records spanning no more than four years and verifiable amounts, 1,617 have cumulative funding of no more than $5 million, accounting for 49.8%, with a median funding amount of $2.5 million. Approximately 96% of these projects completed only a single funding round.

By sector, DeFi, infrastructure, and gaming projects together account for 59.2%. Additionally, 92.9% of projects have identifiable investors, and 83.5% have disclosed at least two investors. However, roughly a quarter of the projects in the sample have ceased operations.

The U.S. SEC proposed the "Regulation Crypto Assets" framework on August 18, which introduces two tiers of issuance exemptions: one tier allows projects to raise no more than $5 million cumulatively over four years; the other allows projects to raise up to $75 million every 12 months, subject to filing financial statements and fulfilling ongoing reporting obligations. The proposal is currently in a 60-day public comment period and has not yet taken effect.