SEC Proposes Startup-Scale Crypto Fundraising Exemptions After Surprise Reversal
The SEC proposed two exemptions under Regulation Crypto Assets to let crypto projects raise funds without full securities registration: up to $5 million over four years for startups, or up to $75 million annually if issuers provide financial statements and ongoing reports, with disclosures and antifraud rules still applying; a conditional safe harbor could allow a token to delink from its initial investment contract if conditions are met. The move follows an abrupt reversal after canceling a meeting amid pressure from Wall Street and the White House, signaling a pragmatic push to foster crypto innovation while protecting investors, as Treasury GENIUS Act rules advance and Clarity Act negotiations continue.