SEC’s proposed crypto rules probably won’t spark new ICO boom
The SEC’s ‘regulation crypto assets’ proposals could create early-round FOMO. But some tokens may still fall into the no-man’s land between security and non-security.
The SEC's proposed Regulation Crypto Assets could potentially ease public token sales in the United States, although it's unlikely to reignite the initial coin offering (ICO) frenzy seen in 2017. The proposal includes two exemptions: a one-time limit of $5 million over four years for startups, and a rolling exemption of up to $75 million per year.
However, issuers must file a new offering statement and undergo an SEC staff review for each raise, followed by annual and semiannual reports. Reiners, a Duke University financial regulation expert, doubts the $75 million exemption will spur a return to the ICO boom, as investors' appetite for high-risk investments has diminished since the last ICO cycle.
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