Overview
- The SEC publicly proposed the Regulation Crypto Assets package on Wednesday, establishing a formal rulemaking that targets how token offerings are treated under securities law.
- The proposal creates two fundraising tracks: a startup lane that allows up to $5 million in token sales over four years and a larger lane that permits up to $75 million in a 12‑month period with stronger financial disclosures and ongoing reporting.
- It includes a conditional safe harbor that would let certain tokens stop being treated as investment contracts once issuers complete promised managerial efforts and meet other conditions.
- The rule will open a 60‑day public comment period once it appears in the Federal Register and the SEC has framed the package as an agency solution while urging Congress to pass legislation for durable protections.
- Industry groups reacted positively to the text but the proposal remains vulnerable to legal challenges and to reversal by future administrations, which could push some projects to change where and how they raise capital.