The SEC’s Oct. 20 comment deadline has passed for its crypto offering proposal, which would give eligible issuers new routes to raise capital without registering qualifying offerings.
The SEC’s rulemaking page continues to list Oct. 20 as the due date and provides a submission form.
The SEC’s proposed crypto offering framework would give eligible issuers two ways to raise capital without registering qualifying offerings. One would cover up to $5 million over four years. The second, modeled on Regulation A, would allow up to $20 million under Tier 1 or $75 million under Tier 2 during a 12-month period.
Both tiers of the larger fundraising route would require financial statements and ongoing reports. Tier 2 statements would need to be audited, while Tier 1 statements would have no assurance requirement. Issuers using either exemption would have to provide narrative disclosures, and federal antifraud and antimanipulation rules would still apply.
The proposal has drawn differing responses. In an Oct. 20 comment, Ripple Labs Inc. urged the SEC to adopt it with refinements. Public Citizen asked the agency to withdraw it, arguing in its own Oct. 20 comment that the exemptions and a proposed safe harbor would weaken protections for retail investors.
The SEC has not adopted the proposal or announced a date for a final decision.
