SEC Changes Rules, Making Fundraising Easier for Crypto Firms

SEC Changes Rules, Making Fundraising Easier for Crypto Firms

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Regulation A is an exemption from public offering registration; it has two offering tiers. Tier 1 is for offerings of up to million in a 12-month period. Currently, Tier 2 is for offerings of up to million in a 12-month period. Regulation Crowdfunding allows eligible companies to offer and sell securities through crowdfunding.

SEC’s New Rules Allow Crypto Companies to Raise More Money

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The SEC announced Monday that it has amended some rules pertaining to several exemptions. Among other changes, the regulator has increased “the offering limits for Regulation A, Regulation Crowdfunding, and Rule 504 offerings” and has revised “certain individual investment limits,” the announcement states. The amendments will be effective 60 days after publication in the Federal Register.
As for the third exemption, Commissioner Peirce described: “By increasing the Rule 504 offering limit from million to million, we seek to encourage more issuers to use this under-utilized exemption, to conduct regional multistate offerings, and to make use of state coordinated review programs.”
We are adopting targeted improvements to a regulatory scheme that unnecessarily hinders capital formation and unduly restricts investors’ opportunities to participate in economic growth.
The post SEC Changes Rules, Making Fundraising Easier for Crypto Firms appeared first on Bitcoin News.

The U.S. Securities and Exchange Commission (SEC) has amended some exemption rules, making it easier for crypto companies to raise funds. The rule changes raise fundraising limits for Regulation Crowdfunding, Regulation A, and Regulation D’s Rule 504 offerings.

“We are increasing the maximum permitted offering amounts for certain exemptions,” explained SEC Commissioner Hester Peirce, also known as Crypto Mom. “By raising the offering limit under Tier 2 of Regulation A from million to million and the Regulation Crowdfunding offering limit from .07 million to million, we seek to reduce the costs relative to the amount raised under these exemptions.”
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Currently, Rule 504 of Regulation D provides eligible companies with a registration exemption when they offer and sell up to million of their securities in any 12-month period. Peirce remarked:

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