The SEC Wants to Make It Easier to Raise Money in Crypto

A newly proposed SEC rule would let crypto startups raise capital without triggering securities registration requirements. The agency proposed a rule that would let companies sell digital assets without registering them as securities, as long as they stay under certain limits.

The rule has two tracks. A company could sell up to $5 million in digital assets over a four-year period, or up to $75 million over 12 months. The bigger exemption demands more: firms must submit financial records and fulfill recurring reporting obligations, all detailed in a proposal that runs more than 400 pages.

SEC Chairman Paul Atkins framed it as answering a question that has puzzled the blockchain…