SEC Proposes First Formal Crypto Rules for Token Fundraising
The U.S. Securities and Exchange Commission (SEC) has proposed its first formal rules for token fundraising under the name 'Regulation Crypto Assets.' The new framework introduces two paths for selling tokens without registering with the SEC: a smaller path allowing up to $5 million over four years, and a larger one permitting up to $75 million annually. Both require narrative disclosures similar to whitepapers, while the higher tier also mandates financial statements and ongoing reporting. The rules aim to provide clarity after a decade of enforcement through lawsuits rather than formal regulations. They include a safe harbor provision that removes investment contract status once an issuer completes or permanently stops its promised managerial efforts—a concept first proposed by Commissioner Hester Peirce in 2020. This shift could lead to renewed interest in initial coin offerings (ICOs) within the U.S., as it offers legal onshore options for token sales. The broader market saw crypto majors rise, with Bitcoin up 0.5% at $64.5k and Solana leading gains. Institutional players like Citi are also entering the space by offering Bitcoin custody services.
Topics: crypto regulation Regulation Crypto Assets SEC token fundraising