The Securities and Exchange Commission (SEC) proposed a new rule on August 18 allowing crypto companies to raise capital through two exemptions from standard registration. A smaller exemption caps offerings at $5 million every four years with simplified disclosures, while a larger exemption reaches $75 million annually with stricter reporting. A conditional safe harbor could remove certain tokens from the “investment contract” definition. Public comments will be accepted for 60 days after publication in the Federal Register. The proposal comes ahead of a White House meeting on August 19 and amid stalled Senate progress on the CLARITY Act.
The Securities and Exchange Commission (SEC) proposed a new rule on August 18 that would let crypto companies raise money through two exemptions from standard securities registration. The plan, called “Regulation Crypto Assets,” sets one path capped at $5 million every four years and another at $75 million per year.
Under the proposal, the smaller exemption requires narrative disclosures written in plain language. The larger exemption demands financial statements and ongoing reporting as long as fundraising continues.
The rule also includes a conditional safe harbor removing certain crypto assets from the “investment contract” definition. Chairman Paul Atkins said the change would apply “once an issuer has completed or permanently ceased all essential managerial efforts” it promised.
“Congress designed our securities laws to amplify – within specific guardrails – opportunities for entrepreneurs to innovate and build new products,” Atkins added. The rule further preempts state securities registration requirements for offerings made under either exemption.
The proposal builds on an SEC interpretation from March 2026 and landed one day before a White House meeting scheduled for August 19. Executives from Ripple, Coinbase, Chainlink, Paradigm, Kalshi, and a16z are expected to sit down with regulators.
President Donald Trump is reportedly expected to attend, and Atkins himself is also expected to show up. The CLARITY Act, which would draw a line between SEC and CFTC authority over digital assets, remains stalled in the Senate with a cloture vote scheduled for September 15.
The public will be allowed to comment on the proposal for 60 days after it appears in the Federal Register.
