SEC cancels crypto fundraising meeting, leaving token issuers with no new path to fund development
The SEC canceled its scheduled open meeting, delaying any public proposal for a tailored crypto fundraising regime. No new rule exists yet, so crypto projects must still use existing Securities Act registration or exemptions. March SEC guidance clarified that a crypto asset can be separate from the investment contract in which it is sold: a token may not itself be a security, but its sale can still be an investment contract if buyers fund a common enterprise expecting profits from the issuer’s essential managerial efforts. That means compliance is determined at the fundraising transaction, and later token separation does not erase the need for registration or an exemption. Issuers can still raise money through current paths such as Rules 506(b)/506(c), Regulation A, Regulation Crowdfunding, Rule 504, and Regulation S, each with different investor, marketing, disclosure, and cap requirements. Proposed crypto-specific exemptions in Congress and Chair Paul Atkins’s informal ideas remain only proposals, not usable law.
