SEC’s New Crypto Fundraising Rules Unlikely to Trigger Another ICO Frenzy

The Securities and Exchange Commission’s newly proposed Regulation Crypto Assets rules could make it easier for companies to sell tokens publicly in the United States, but experts say it won’t bring back the wild initial coin offering boom of 2017. The proposal would let qualifying projects raise up to $75 million during any 12-month period, potentially returning year after year to raise more as their networks grow.

Two New Exemptions on the Table

The SEC’s plan, released August 18, creates two paths for crypto fundraising. One is a one-time exemption for startups to raise up to $5 million over four years. The other, larger exemption allows up to $75 million per year and is partly modeled on existing Regulation A rules, though it comes with disclosure and reporting requirements attached.

Could Projects Raise Money Every Year?

Legal experts say yes, projects could potentially conduct repeated $75 million raises annually, as long as each one qualifies as a genuinely separate offering. However, each new raise isn’t automatic. Issuers would need to file fresh paperwork, go through SEC staff review, and disclose prior fundraising amounts so regulators can verify the cap wasn’t exceeded.