SEC Proposes Crypto Fundraising Exemptions Under Regulation Crypto Assets
SEC file S7-2026-27 creates $75 million and $5 million exemptions plus a safe harbor for crypto investment contracts.
The Securities and Exchange Commission filed proposal S7-2026-27 for Regulation Crypto Assets. The framework introduces two exemptions for offerings tied to crypto assets and a conditional safe harbor that could end investment-contract treatment once managerial efforts cease.
Under the larger exemption, issuers could raise up to $75 million in any 12-month period. They would need narrative disclosures, financial statements, and ongoing reports. A lighter route would permit up to $5 million over four years with reduced disclosure demands.
Open questions
Chairman Paul Atkins has stated that the rules aim to separate the token itself from the original sale arrangement. The proposal carries no immunity from antifraud rules. A 60-day comment period would follow publication in the Federal Register.
The rules remain proposals and could change after comments. Final eligibility standards and safe-harbor conditions are not yet known.