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The proposal creates two exemption tracks for token offerings and a safe harbor that lets certain crypto assets exit securities law requirements
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The Securities and Exchange Commission proposed new rules on Tuesday that would create a dedicated offering framework for crypto assets, establishing the agency's first formal regulatory regime for digital token sales under the federal securities laws.
The proposal, titled "Regulation Crypto Assets," includes two exemptions from registration requirements under the Securities Act of 1933. The first, a "startup" exemption, would allow issuers to raise up to $5 million over a four-year period. The second, a "fundraising" exemption, would permit offerings of up to $75 million in each 12-month period and comes with more extensive disclosure obligations, including financial statements and ongoing reporting requirements. Issuers pursuing either path would need to make narrative disclosures to investors grounded in principles-based standards, and neither track would shield them from the securities laws' antifraud and antimanipulation rules.
