SEC Unveils ‘Regulation Crypto Assets’: New $5M and $75M Path for Token Offering

The public will be allowed to comment on the proposal for 60 days after it appears in the Federal Register. The Securities and Exchange Commission (SEC) proposed a new rule on August 18 that would let crypto companies raise money through two exemptions from standard securities registration. The plan, called “Regulation Crypto Assets,” sets one path capped at $5 million every four years and another at $75 million per year, alongside a safe harbor that could pull certain crypto assets outside the legal definition of a security. Two Paths to Raise Capital Under the proposal, the smaller exemption is a one-time offering worth up to $5 million over a four-year period. Issuers using it would need to give investors narrative disclosures about the offering, written in plain language rather than the dense form typical of a full registration statement, and the requirements stay fairly informal by comparison. The larger exemption goes up to $75 million in any 12-month stretch, but it comes with more paperwork: financial statements and ongoing reporting obligations for as long as a company keeps raising money under it. The rules also includes a conditional safe harbor removing certain crypto a...