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SEC proposes Regulation Crypto Assets framework for crypto fundraising
The U.S. Securities and Exchange Commission (SEC) has proposed a new regulatory framework titled ‘Regulation Crypto Assets’ to provide clearer pathways for cryptocurrency projects to raise capital under federal securities laws. Announced by SEC Chairman Paul Atkins, the proposal aims to address the legal ambiguity that has historically forced many blockchain projects to seek funding offshore.
The framework introduces two primary registration exemptions. The ‘startup exemption’ would allow early-stage projects to raise up to $5 million over a four-year period. A second ‘fundraising exemption’ would permit offerings of up to $75 million within any 12-month period, provided issuers meet specific financial reporting and disclosure requirements.
Additionally, the proposal includes a conditional safe harbor. This mechanism would allow a crypto asset to be decoupled from its original investment contract once the issuer has completed or permanently ended the essential managerial work promised to buyers, effectively allowing the asset to no longer be classified as a security.
Industry analysts from Grayscale Research suggest these rules could drive value to major networks like Ethereum, Solana, and BNB Chain by bringing U.S. issuers back on-chain. Galaxy Research noted that the safe harbor might provide more immediate relief for existing tokens in circulation than the new fundraising exemptions. A 60-day public comment period is currently underway, with comments due by October 20.
Entities
BNB Chain · Ethereum · Ethereum · Galaxy Research · Grayscale · Paul Atkins · Securities and Exchange Commission · Solana · Solana · U.S. Securities and Exchange Commission
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Grayscale Research suggests the rules could drive value to underlying networks like Ethereum, Solana, and BNB Chain. retailwit.com · www.cryptobreaking.com · www.pymnts.com
- [○ 1 SOURCE] Galaxy Research estimates the SEC expects approximately 475 issuers to use the safe harbor annually. bitcoinethereumnews.com
- [● 5 SOURCES] The proposal includes a conditional safe harbor for assets that were originally issued as part of an investment contract but are no longer securities. bitcoinethereumnews.com · sarsonfunds.com · www.acessa.com · www.spacemoney.com.br · startupi.com.br
- [● 9 SOURCES] The proposal includes a startup exemption allowing issuers to raise up to $5 million over a four-year period. www.cryptobreaking.com · sarsonfunds.com · www.acessa.com · retailwit.com · crypto-times.jp · +4 more
- [● 13 SOURCES] The SEC has proposed a new framework called ‘Regulation Crypto Assets’ to provide clear pathways for crypto projects to raise capital under federal securities laws. koinbulteni.com · retailwit.com · bitcoinethereumnews.com · bitfinanzas.com · www.cryptobreaking.com · +8 more
- [● 9 SOURCES] A second fundraising exemption would permit offerings of up to $75 million within any 12-month period, subject to financial reporting requirements. www.cryptobreaking.com · sarsonfunds.com · www.acessa.com · retailwit.com · crypto-times.jp · +4 more