The U.S. Securities and Exchange Commission proposed a new regulatory framework for crypto asset offerings on Tuesday, aiming to provide clearer pathways for fundraising while maintaining investor protections.
Under the proposed rules, dubbed “Regulation Crypto Assets,” eligible issuers could raise up to $5 million over a four-year period under a simplified exemption. A second exemption would permit offerings of up to $75 million within any 12-month window, though issuers utilizing this route would face stricter requirements, including financial statement disclosures and ongoing reporting obligations.
The framework introduces a conditional safe harbor, specifying that certain crypto assets would no longer be classified as part of an investment contract under federal securities laws once predefined conditions are satisfied. It also preempts state-level registration and qualification requirements for offerings and select secondary-market transactions conducted under the new rules.
SEC Chairman Paul Atkins stated that the proposal seeks to give crypto entrepreneurs clearer avenues to raise capital domestically while fostering innovation. The move follows the regulator’s March guidance on the application of federal securities laws to crypto assets and transactions.
Public feedback on the proposal will be accepted for 60 days after its publication in the Federal Register, after which the SEC will review comments before finalizing the rules.
