Friday’s SEC vote could unlock $75 million crypto raises – or trap token issuers in unexpected legal fine print
The SEC is set to vote on proposed crypto fundraising rules that could create tailored paths for some token projects to raise capital without full securities registration. If approved, the draft would go out for public comment, but it would not provide an immediate exemption. The proposal appears to turn Chair Paul Atkins’ March framework into a formal Commission draft. Two parts focus on fundraising: a startup exemption that could last up to four years and allow an illustrative $5 million total raise, and a separate exemption for up to an illustrative $75 million in any 12-month period. Both would require principles-based disclosures, with the larger exemption also requiring financial condition and financial statements. A third concept is different: a safe harbor for certain crypto assets after an issuer finishes or stops the essential managerial efforts it promised buyers. None of the ideas would remove earlier registration duties. Key details remain unresolved, including eligibility, resale rules, and possible bad-actor or investor limits.
