SEC proposes new 'Regulation Crypto' framework enabling startups to raise up to $5M with simplified disclosures and projects up to $75M annually, signaling shift from enforcement toward structured capital-raising.
Regulation & Gov ·
The SEC is preparing to propose a new "Regulation Crypto" framework as early as July 2026 that would create pathways for startups to raise capital with reduced compliance burdens, including an exemption allowing up to $5 million in fundraising with simple white-paper disclosures and a separate exemption permitting up to $75 million annually with basic disclosures. The proposal would also establish a safe harbor for decentralizing projects covering DeFi and tokenized securities, with SEC Chair Paul Atkins citing regulatory clarity and investor protection as dual objectives. The shift marks a departure from enforcement-focused regulation toward structured rules designed to position the United States as a leader in crypto innovation.