SEC opens door to public token sales, but ICO demand has moved on: Bloomberg

The US Securities and Exchange Commission has proposed allowing crypto projects to raise up to $75 million annually without full registration, reopening public token fundraising at a time when investor demand for new tokens has fallen sharply from the ICO boom. Summary The SEC has proposed exemptions allowing crypto startups to raise up to $5 million and larger projects up to $75 million without full registration. Investor demand for new tokens has fallen sharply since the 2018 ICO boom as capital has concentrated around major crypto assets and other speculative markets. Venture investors say clearer rules could help legitimate token projects raise capital in the US, though fundraising is no longer the industry’s most pressing regulatory issue. The proposal would create a path for tokens to leave investment contract treatment once issuers complete or permanently cease the managerial work promised to investors. According to Bloomberg, the proposal could restore a legal route for US investors to participate in public token sales after years of enforcement actions effectively pushed much of the business offshore, but venture investors question whether the market that fueled the 2017 a...