Crypto news: SEC proposes first major rule as Trump meets executives

The SEC proposed its first major crypto rule on Tuesday, unveiling “Regulation Crypto Assets” to create clearer pathways for digital asset offerings as crypto executives gather at the White House today to discuss regulatory clarity with President Trump.

The proposal includes two exemptions from securities registration requirements specifically tailored for crypto companies. The startup exemption would allow issuers to raise up to $5 million over a four-year period, while the fundraising exemption would permit raises of up to $75 million within any 12-month stretch, according to the SEC press release.

Under both exemptions, companies must provide investors with narrative, principles-based disclosures rather than the dense legal filings typically required of public offerings. The second exemption also requires issuers to publish financial statements and meet ongoing reporting duties, the SEC stated.

The framework also introduces a conditional safe harbor that could eventually place certain tokens outside the legal definition of a security once an issuer completes or permanently ceases the managerial efforts it promised investors. Additionally, the rule would preempt conflicting state securities law registration requirements, sparing issuers from having to comply separately with individual state regimes.