SEC Crypto Rules Could Redefine Token Sales and Startup Funding

The SEC proposes a $5 million startup exemption and two larger fundraising tiers allowing up to $20 million and $75 million annually. Tokenized securities, including stocks and bonds, would remain outside the new exemptions. The larger fundraising routes require SEC qualification and continuing reports, while a conditional safe harbor could end an issuer’s investment-contract obligations. The U.S. Securities and Exchange Commission’s proposed Regulation Crypto Assets would give qualifying cryptocurrency projects new ways to raise capital without completing a conventional registered securities offering.