Morning Minute: SEC Brings Clarity to Crypto
The SEC proposed its first formal crypto fundraising rules, called “Regulation Crypto Assets,” replacing years of enforcement-by-lawsuit with defined paths for token sales. The proposal offers two exemptions: a smaller one-time raise of up to $5 million over four years, and a larger raise of up to $75 million in any 12-month period, similar to Reg A+ Tier 2. Both require plain-language disclosures, while the larger tier also requires financial statements and ongoing reporting. The rules would preempt certain state registration requirements for exempt offerings and some secondary trades. A key feature is a safe harbor: a token would stop being treated as an investment contract after the issuer finishes or permanently stops the essential managerial efforts it promised. If adopted, the framework would create a legal onshore path for U.S. token fundraising and could trigger a new wave of ICO-style launches.
