SEC Proposes Allowing Crypto Projects to Raise Up to $75 Million Annually Without Full Securities Registration

Odaily News: The U.S. Securities and Exchange Commission (SEC) proposed new rules on Tuesday that would allow crypto projects to raise funds without undergoing full securities registration. The proposed "Crypto Asset Regulation" includes two exemptions: projects may raise no more than $5 million over a 4-year period, and issuers may raise no more than $75 million per 12-month period, subject to the submission of financial statements and ongoing reporting.

Both exemptions require information disclosure and remain subject to federal anti-fraud and anti-manipulation rules. The proposal also includes a conditional safe harbor that would allow issuers to "decouple" crypto assets from the investment contracts underlying their issuance once SEC conditions are met.

SEC Commissioner Hester Peirce stated that the exemptions will not cover all types of crypto projects, and the Commission will refine the rules in response to market developments. The SEC canceled a related meeting last week citing "unforeseen scheduling issues," and resumed advancing the proposal just days later. (Decrypt)