SEC Unveils ‘Regulation Crypto Assets’ Draft: New Compliance Path for Token Sales

TREE NEWS update: The SEC released a draft rule, ‘Regulation Crypto Assets,’ on August 18, providing a legal pathway for startups to raise up to $5 million over four years or up to $75 million annually, without full securities registration. The draft introduces a ‘graduation’ concept where tokens exit investment contract status once the issuer fulfills its commitments, shifting focus from decentralization to promise completion. This milestone proposal, passed unanimously by SEC commissioners, could revive compliant token offerings while imposing strict disclosure and anti-fraud requirements.