SEC proposes new crypto securities framework with exemptions up to $75 million

The Securities and Exchange Commission proposed new rules Tuesday that would create a tailored securities offering framework for certain investment contracts involving crypto assets. The proposal, called Regulation Crypto Assets, follows the SEC’s March 2026 interpretation clarifying how federal securities laws apply to certain crypto assets and transactions. The rules would introduce two exemptions from Securities Act registration requirements. One would allow issuers to raise up to $5 million during a four year period, while the second would permit offerings of up to $75 million during each 12 month period. Issuers using either exemption would be required to provide investors with principles based disclosures. Those using the larger exemption would also need to provide financial statements and comply with ongoing reporting requirements. The proposal would also establish a conditional safe harbor under which a crypto asset could no longer be treated as subject to an investment contract once certain conditions are met, including when an issuer has completed or permanently ceased the essential managerial efforts it previously represented it would perform. SEC Chairman Paul Atkins sa...