SEC Unveils New Crypto Framework as Washington Seeks Clearer Rules

The U.S. Securities and Exchange Commission has proposed a crypto framework that could reshape fundraising across America’s digital asset industry. The proposal marks a significant shift under President Donald Trump’s administration. It seeks to create clearer routes for crypto businesses to raise capital without facing traditional securities requirements.

New Fundraising Pathways

The framework would create exemptions covering token offerings of different sizes. Smaller issuers could receive a one-time exemption covering up to $5 million over four years.

Additionally, companies could offer as much as $75 million during a 12-month period. But those issuers would still have financial disclosure and reporting requirements.

Moreover, the SEC proposed a safe harbor for certain crypto assets. The provision could prevent qualifying tokens from being classified as investment contracts.

Industry Welcomes Shift

The proposal follows years of pressure from crypto companies seeking clearer U.S. rules. Consequently, the framework could encourage more blockchain businesses to operate domestically. Besides, it may reduce uncertainty surrounding token launches and capital formation.

Significantly, the proposal arrives after Congress stalled broader crypto legislation. However, concerns remain about future administrations reversing the SEC’s approach.The agency will accept public comments for 60 days after Federal Register publication.

Related: SEC Charts New Path for Crypto Tokens as US Rules Enter Next Phase