Blockchain Association Urges SEC to Double Crypto Startup Fundraising Cap to $10 Million

Blockchain Association backs Reg Crypto Assets in new SEC letter

The Blockchain Association, a crypto industry trade group, has asked the U.S. Securities and Exchange Commission (SEC) to double the fundraising exemption available to crypto startups to $10 million. The request came in a comment letter supporting a proposed rule called Regulation Crypto Assets.

The group also asked the SEC to make other changes to the proposal, including raising both offering caps in the rule, writing existing Howey guidance into the regulation itself, and allowing third parties to file for tokens that are already trading.

Key requests in the letter

• Double the crypto startup exemption to $10 million.
• Raise both offering caps set out in Regulation Crypto Assets.
• Write the SEC's Howey guidance into the rule text.
• Let third parties file for tokens that are already trading.

What is confirmed

According to the source, the Blockchain Association filed a comment letter in support of Regulation Crypto Assets. The letter asks the SEC to raise the offering caps in the proposal, to double the crypto startup exemption to $10 million, to put Howey guidance into the rule, and to permit third-party filings for tokens already trading.

What is still unclear

The source does not state the current size of the exemption or the offering caps, the exact language the group wants included, or how the SEC responded to the letter. It is also not clear whether the SEC will adopt any of the requested changes or on what timeline.

Why it matters

Regulation Crypto Assets is a proposed SEC rule that would set out how certain crypto offerings are treated. Comment letters are a formal way for outside groups to ask for changes before a rule is finalized. If the SEC raised the offering caps, the exemption would cover larger fundraisings than it does now.

Sources

• The Defiant