SEC Crypto Proposal Offers New Paths for Crypto Asset Issuers

SEC Crypto News: The Securities and Exchange Commission proposed Regulation Crypto Assets, a framework that would allow eligible projects to raise up to $75 million in any 12-month period without registering the offering under the Securities Act.

The proposal also includes a conditional safe harbor under which a crypto asset could be deemed not subject to an investment contract if specified conditions are met.

Fundraising exemption: Up to $75 million per 12-month period, with financial statements and ongoing reporting requirements. Startup exemption: Up to $5 million over a four-year period, with principles-based narrative disclosures.

Investment contract safe harbor: A conditional path under which a crypto asset could be deemed not subject to an investment contract.