SEC's $75M Crypto Fundraising Proposal Faces Bank Opposition and Legal Threats

The SEC proposed in August 21 that qualifying crypto projects could raise up to $5 million over four years or $75 million annually without registering investment-contract offerings under the Securities Act, provided they meet disclosure and anti-fraud provisions. This proposal, whose comment deadline was October 20, has drawn warnings from US banks that the exemptions could drain deposits, while industry players like Bitwise and the Alternative Investment Management Association push for broader token access and regulatory clarity.