SEC vote to shape crypto fundraising rules, from $5m startup lane to $75m annual cap

The U.S. Securities and Exchange Commission (SEC) will hold a vote Friday on proposed crypto fundraising rules that could let some token issuers raise capital without full securities registration. The key point is timing: even if the SEC vote approves the proposal, it would open for public comment later and would not become an immediate exemption. The framework Chair Paul Atkins outlined in March is being translated into a formal Commission proposal. It contains three main components, covering different legal questions. 1) Startup exemption (up to four years): issuers could raise an illustrative $5 million over the period. They would provide “principles-based” disclosures about the investment contract and the underlying crypto asset, and then notify the SEC when entering and leaving the exemption. 2) Separate fundraising exemption: an illustrative $75 million in any 12-month period, with similar disclosure plus discussion of the issuer’s financial condition and financial statements. 3) Post-issuer “safe harbor” for certain crypto assets: after issuers complete or permanently cease essential managerial efforts they promised buyers, a token could potentially exit securities status—but only if the original offering was registered or already qualified for an exemption. Ahead of the Aug. 14 open meeting (10 a.m. ET), developers still lack critical details, including who qualifies, whether “bad actor” exclusions apply, the investor limits, and how resale would be treated. The SEC agenda provides no operative numbers, meaning the final scope could be narrower or broader than market hopes. For traders, the SEC vote is a catalyst for regulatory expectations—positive for risk pricing where fundraising paths gain clarity, but potentially bearish if limits and resale constraints are restrictive when the draft is published.