SEC Proposes Easing Crypto Issuers’ Fundraising Rules, With Annual Cap of $75 Million

The US Securities and Exchange Commission is proposing to ease fundraising rules for cryptocurrency issuers.

SEC Commissioner Hester Peirce outlined the proposal in a statement on Aug. 18. At its core, the plan would create separate fundraising pathways tailored to crypto instead of applying existing securities rules without modification.

Peirce’s proposal includes two options: a startup exemption and a fundraising exemption. The startup exemption would allow crypto businesses to raise up to $5 million over four years.

Under the fundraising exemption, crypto issuers could raise as much as $75 million every 12 months. Issuers would be required to disclose financial statements and continue providing related information after the fundraising.

Both frameworks would require disclosures under regulatory rules so investors can make informed decisions. Existing federal securities laws barring fraud and market manipulation would remain in force.

“Existing securities regulations have created unnecessary difficulties for crypto investors and businesses,” Peirce said. “We need rules that are clear, reasonable and actually workable.”

The measure remains at the proposal stage rather than a final rule. Peirce asked the industry and other stakeholders to submit comments over the next 60 days.