SEC proposes sweeping new Crypto rules to ease token fundraising as US regulators seek clearer framework for digital-asset businesses

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The US Securities and Exchange Commission has proposed a major new regulatory framework for cryptocurrencies that could make it easier for digital-asset businesses to raise money through token sales, while introducing disclosure requirements designed to protect investors.

Under the proposal announced on 18th August, qualifying crypto start-ups could raise up to $5 million over a four-year period without going through the full traditional securities-registration process. A separate fundraising exemption could permit eligible issuers to raise as much as $75 million during a 12-month period, subject to financial statements and other disclosures.

The SEC is also proposing a safe harbour that could provide greater certainty over when particular crypto assets are no longer treated as securities under US law. The measures build on regulatory guidance introduced earlier this year.

SEC Chairman Paul Atkins has argued that the regulator needs rules specifically designed for the developing digital-asset industry rather than forcing every project through conventional securities frameworks.

When outlining the concept earlier this year, Atkins said, "Such a safe harbour would provide crypto innovators bespoke pathways to raise capital in the U.S., while providing appropriate investor protections. He also argued that America's securities laws should encourage rather than obstruct technological development, saying regulators must ensure the rules remain faithful to principles that give individuals the freedom to innovate and to take risks."

The proposal represents another significant shift in Washington's approach to cryptocurrency under President Donald Trump. However, regulatory action by the SEC cannot provide the same long-term certainty as legislation passed by Congress.

The broader CLARITY Act, which would establish clearer boundaries between SEC and Commodity Futures Trading Commission oversight, remains stalled in the Senate. The SEC proposal will now undergo a 60-day public comment period, allowing investors, crypto businesses and other interested parties to respond before regulators consider final rules.