The SEC has proposed Regulation Crypto Assets, introducing two new fundraising exemptions that would allow crypto projects to raise capital without full securities registration. Under the proposal announced August 18, issuers can raise up to $5 million over four years or up to $75 million within any 12-month period, both requiring plain-language disclosures to investors. The larger exemption also mandates financial statements and ongoing reporting.
The regulation’s key innovation establishes a safe harbor defining when tokens can stop being classified as securities. Once development teams complete or abandon promised managerial efforts, tokens previously sold as securities could exit investment-contract classification. This addresses longstanding uncertainty around token lifecycles and securities law.
SEC Chairman Paul Atkins called this “the most historic step yet to modernize federal securities regulations for crypto assets.” The framework builds on the SEC’s March 2026 taxonomy splitting crypto into five categories, coordinated with CFTC oversight for non-security assets.
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Crypto projects can now access legitimate US capital markets with regulatory clarity, potentially triggering significant onshore migration of token issuance and development activity.
Source: Finance Magnates