The U.S. Securities and Exchange Commission on Tuesday proposed a new framework that would let some crypto projects raise funds without going through full securities registration. The draft "Crypto Asset Regulation" sets out two exemptions: one for projects raising up to $5 million over four years, and another for issuers raising up to $75 million in any 12-month period. In both cases, issuers would still need to provide disclosures, submit financial statements, and continue ongoing reporting where required. The proposal also keeps federal anti-fraud and anti-manipulation rules in force, rather than carving crypto offerings out of those standards. Another piece of the draft is a conditional safe harbor that would allow an issuer, if SEC conditions are met, to separate a crypto asset from the investment contract tied to its issuance. SEC Commissioner Hester Peirce said the exemptions would not apply to every kind of crypto project and that the commission would refine the rules as the market changes. The proposal moved forward days after the SEC canceled a related meeting last week, citing "unforeseen scheduling issues," according to Decrypt.
The U.S. Securities and Exchange Commission on Tuesday proposed a new rule that would allow crypto projects to raise money without completing full securities registration.
The proposed framework, described as "Crypto Asset Regulation," includes two exemptions. One would let a project raise no more than $5 million over four years. The other would allow an issuer to raise up to $75 million in a 12-month period, provided it submits financial statements and keeps up ongoing reports.
Disclosure requirements remain in place
Both exemptions would require disclosures, and both would still be subject to federal anti-fraud and anti-manipulation rules.
Proposal includes a conditional safe harbor
The draft also includes a conditional safe harbor that would let an issuer, after meeting SEC requirements, separate a crypto asset from the investment contract tied to its issuance.
Peirce says scope will not cover every project
SEC Commissioner Hester Peirce said the exemptions would not cover all types of crypto projects and that the commission would continue refining the rules as the market changes.
The SEC canceled a related meeting last week, citing "unforeseen scheduling issues," and revived the proposal several days later. Decrypt was cited as the source in the original report.
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