- The SEC proposed exemptions allowing crypto projects to raise up to $5 million over four years or $75 million annually without full securities registration.
- The proposal includes a safe harbor that could allow a crypto asset to separate from the investment contract through which it was sold.
- The SEC moved forward with the proposal days after canceling a meeting on the framework amid reported pressure from Wall Street and the White House.
The Securities and Exchange Commission proposed new rules Tuesday letting crypto projects raise funds without full securities registration. The agency abruptly changed course after calling off a meeting late last week in which it was expected to introduce the measures.
Under Regulation Crypto Assets, a startup exemption would allow digital token offerings up to $5 million over four years. A second exemption would let token issuers raise up to $75 million every 12 months with financial statements and ongoing reports.
Both exemptions require disclosures, while federal antifraud and antimanipulation rules still apply. The measures arrive after a setback in negotiations over the Clarity Act sank hopes that marquee market-structure legislation would pass this year.
SEC Commissioner Hester Peirce acknowledged the proposed exemptions would not cover every crypto project. She called on the industry to provide feedback on how the rules should evolve.
“The Commission wants to accommodate innovation on many fronts, and our rules need to be tailored to changing market developments and designed to protect investors and market integrity,” she wrote. “This proposal is one step on a long road toward a clear, sensible, enforceable regulatory framework for crypto.”
The proposal includes a conditional safe harbor allowing an issuer to delink a crypto asset from the investment contract through which it was sold. That could allow a token initially tied to a securities transaction to separate if the issuer meets SEC conditions.
The proposal comes after the SEC abruptly canceled a meeting on Regulation Crypto Assets last week citing an unforeseen scheduling issue. On Monday, Crypto In America reported that SIFMA, a Wall Street trade group, had discussed a potential legal challenge to the SEC‘s authority.
Meanwhile, the U.S. Treasury Department proposed regulations implementing the GENIUS Act that would require stablecoin issuers to obtain federal or state licenses beginning in January 2027. Crypto platforms would face restrictions on selling stablecoins from unapproved issuers beginning in July 2028.
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