SEC’s $75 million crypto fundraising plan faces bank backlash and threats of legal action
Commenters divided over the SEC’s proposed crypto fundraising exemptions and a safe harbor for tokens to exit investment-contract status. Bitwise and investment groups sought broader protections and clearer rules for funds, custody and resale; Hyperliquid Policy Center urged protection during project development. Nasdaq supported the framework but said tokenized traditional securities should remain subject to existing rules. Community banks warned that crypto and stablecoin growth could draw deposits away and called for tighter safeguards and economic analysis. Investor advocates urged the SEC to withdraw the proposal, citing risks to retail investors and doubts about its legal authority. The SEC will review comments before deciding whether to revise or adopt the rules; opponents warn of potential court challenges.
