SEC Proposes Regulation Crypto Assets to Revive ICO-Style Token Sales in US

The US Securities and Exchange Commission (SEC) has proposed "Regulation Crypto Assets," aimed at establishing clearer rules for certain crypto asset investment contracts. The proposal introduces two new fundraising exemptions for crypto projects. The first exemption allows offerings of up to 5 million dollars over a four-year period with principles-based disclosures. The second exemption permits larger projects to raise up to 75 million dollars every 12 months, requiring additional financial disclosures and ongoing reporting obligations. This move could provide US-based crypto companies with a regulated alternative to offshore fundraising models that gained popularity after the 2017 initial coin offering (ICO) boom. Additionally, the proposal includes a conditional safe harbor that may allow certain crypto assets to exit the definition of an investment contract if issuers fulfill or cease essential managerial efforts promised to investors. The SEC's approach builds on earlier 2026 guidance regarding securities laws and aims to reduce incentives for crypto companies to operate overseas while expanding opportunities for American investors. The agency will accept public comments for 60 days after publication in the Federal Register. If adopted, Regulation Crypto Assets could significantly alter US crypto fundraising rules, offering startups a clearer path to launch tokens domestically.

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