SEC temporarily streamlines crowdfunding for cryptocurrency startups

In connection with the crisis, the US Securities and Exchange Commission (SEC) temporarily "relaxed" the requirements forcryptocurrency projects that raise capital through crowdfunding.

Temporary changes recommendedSEC Small Business Capital Advisory Committee. SEC Chairman Jay Clayton supported this initiative, saying that amid the current economic crisis, many small businesses are having difficulty getting capital in a timely and efficient manner.

Such regulatory changes mean that forraising funds through crowdfunding, firms will not have to provide financial reports and documents, the preparation of which may cause difficulties due to quarantine. However, before securing obligations from investors, firms must provide relevant documentation certified by the head of the firm.

Now tokens issuers do not have to waitpermission to publish their proposal for at least 21 days - they can start selling immediately after concluding an agreement with investors. Under the new rules, firms will be able to raise between $ 107,000 and $ 250,000 in 12 months. The proposed relief was adopted on May 4, and will be valid until August 31.

However, the updated rules do notCompanies registered less than six months ago, as well as companies that previously did not comply with the US Securities Act of 1933 and crowdfunding rules, will fall. Non-US token issuers, investment companies and fictitious firms are also excluded from the program.

Let us recall that in March the SEC proposed to increase the limits for attracting investments as part of the stock token offering (STO) from $50 million to $75 million, and income from crowdfunding from $1 million to $5 million over 12 months.

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