SEC Commissioner Hester Peirce supports the proposed framework of "Regulation Crypto Assets," calling it an important step towards establishing "clear, reasonable, and enforceable rules" for the issuance of crypto assets.

The proposal sets a startup exemption allowing eligible token issuers to raise up to $5 million in a one-time offering within four years; issuers must publish disclosure documents detailing the project, team, token functionality, use of funds, technical status, risks, and key management commitments.

Another financing exemption allows compliant issuers to raise up to $75 million every 12 months, but requires financial statements and ongoing reporting obligations. Both paths do not exempt issuers from anti-fraud, anti-manipulation, and liability requirements under federal securities laws.

The rules propose introducing an "investment contract safe harbor": when an issuer has completed or clearly permanently halted previously committed key management work and meets the declaration and disclosure conditions, the relevant crypto assets may no longer be continuously regarded as securities due to the original sales contract.

Peirce has long advocated for rulemaking to define the boundaries of the crypto market instead of relying on enforcement actions. Past controversies involving the SEC against Telegram, Ripple, Coinbase, and Binance focused on whether initial token sales, secondary trading, and platform functionalities constituted unregistered securities offerings or trading activities; this proposal attempts to separately address early issuance, ongoing financing, and asset status after network maturation.

In market mechanisms, early protocols and token issuers are the direct users of the new exemption paths, with investors exchanging capital for project tokens and potential network participation rights; law firms, auditing firms, disclosure tools, KYC services, issuance platforms, and custodians will bear compliance costs. The rules are still in the proposed stage and have not yet taken effect; if the final text retains the safe harbor and fundraising channels, capital will likely favor projects that can disclose progress, complete technical delivery, and establish verifiable governance mechanisms, while teams relying on regulatory ambiguity and pure narrative fundraising will face pressure.

Source: Public Information