SEC Proposes First U.S. Crypto Fundraising Ladder

The SEC is proposing a formal U.S. fundraising path for crypto projects.
Regulation Crypto Assets, proposed on August 18, creates three offering tiers:
A startup exemption of up to $5 million.
A Tier 1 exemption of up to $20 million.
And a Tier 2 exemption of up to $75 million.
The structure closely mirrors Regulation A, the securities framework that has existed for decades.
Tier 2 would require audited financial statements and additional disclosures, but would also preempt state-level registration requirements.
That gives qualifying crypto issuers one federal path instead of navigating dozens of separate state regimes.
The proposal also includes a safe-harbor concept designed to address one of crypto’s biggest legal problems:
A token could stop being treated as a security once the underlying network becomes sufficiently functional and decentralized.
For projects that previously raised capital offshore because the U.S. lacked a workable framework, this could be a major shift.
The SEC is not deregulating crypto.
It is trying to give crypto fundraising a rulebook.
Public comments are open until October 20.