SEC proposes Regulation Crypto Assets with new capital-raising exemptions

The Securities and Exchange Commission proposed actual, tailored rules for crypto assets on August 18: “Regulation Crypto Assets” introduces specific exemptions for crypto projects raising capital, a conditional safe harbor for tokens that outgrow their “investment contract” classification, and a framework that could reshape how digital asset offerings work in the US. What the rules actually say The proposal creates two distinct fundraising pathways. The first allows entities to raise up to $5 million over a four-year window without going through full Securities Act registration. The second permits raises of up to $75 million annually, with financial statement disclosures and ongoing reporting requirements. The conditional safe harbor would allow issuers to exit “investment contract” status once they stop exerting the essential managerial efforts that triggered securities classification in the first place. SEC Chairman Paul S. Atkins framed the effort as creating “clear pathways to raise capital” while keeping investor protections intact. The proposal also covers certain secondary market transactions, which could reduce the incentive for projects to structure their offerings offsho...