SEC Nears Proposal on Crypto Fundraising and Startup Exemptions, Chair Says
SEC Chair Paul Atkins told the industry Monday that the commission plans to roll out a proposal focused on fundraising and startup exemption issues in the crypto space. The announcement frames the rulemaking as an effort to square securities law with evolving token-based capital raising, targeting longstanding uncertainty around when and how startups can use tokens or other instruments to fund growth. If adopted, clearer rules could ease compliance burdens for issuers and provide investors with better protections, potentially unlocking more orderly capital formation in the sector. Market participants and advocacy groups will be watching for the proposal’s details and timeline, since the precise scope and safe harbors—if any—will determine how quickly startups can adjust fundraising strategies under the new framework.