Recently, the U.S. Securities and Exchange Commission (SEC) released a bill that has drawn significant attention in the industry: Regulation Crypto Assets.

I see this bill as a big step by U.S. regulatory agencies to open the floodgates for companies to raise funds using crypto assets.

Today, I would like to share some interesting terms from the bill (see the reference link at the end for details).

- If a company raises no more than $5 million within four years, it is required to publicly disclose the project's white paper, fulfill the commitments made in the white paper, and register with the SEC.

This type of financing does not require financial statements, allows public fundraising, permits sales to retail investors, and there are no restrictions on the resale of tokens.

- If a larger amount of financing is needed, it will be subject to relatively strict regulation, with details as follows:

If the financing exceeds $5 million but does not exceed $20 million within 12 months, financial statements must be provided, but they do not need to be audited. Non-accredited investors cannot invest more than 10% of their annual income or total assets.

If financing exceeds $20 million but does not exceed $75 million within 12 months, financial reports must not only be provided but also need to be audited. Non-accredited investors cannot invest more than 10% of their annual income or total assets.

If financing exceeds $75 million within 12 months, it will be fully subject to SEC regulation.

There are many other detailed provisions regarding this bill, but after reading the above terms, I fundamentally feel that the regulation of crypto financing has become quite relaxed.

It can be said that if a project’s financing does not exceed $5 million, it is essentially equivalent to the ICOs of the past—anyone can launch a project, and anyone can participate.

However, it offers more basic assurances than the ICOs of that time. It at least guarantees the most basic and reasonable requirement for participants: the public disclosure of the white paper and that the project party must complete the commitments made in it.

This provision gives everyone the greatest equality and freedom while also fulfilling the responsibility of regulation—this is exactly what I appreciate most and hope to see in the ideal role of regulation within the crypto ecosystem, balancing boundaries and not hindering innovation.

According to the provisions, as the financing amount increases, the regulatory conditions become stricter and the methods more stringent. It may seem like regulatory intervention is increasing and freedom is diminishing, but I believe that the vast majority of people can understand and agree with this approach, seeing the balance and trade-offs that regulation strives to achieve in the process.

Once this “gate” is opened, it is not just the crypto ecosystem; I believe that startups in traditional fields, including any high-tech area, can entirely use this approach to raise funds through the crypto ecosystem—they can first engage in low-threshold financing of up to $5 million, and then, as the project progresses and expands, gradually raise the financing amount, facing more stringent regulation and stronger constraints.

What about investors?

This undoubtedly also opens a much wider door. In the future, if more various types of tech companies utilize this route for initial financing (under $5 million), ordinary retail investors will have more opportunities to access high-threshold projects that were previously completely out of reach.

Of course, just because the “gate” has opened does not mean that riches will flow in. I believe there will certainly be many chaotic and mixed projects rushing in to commit fraud and deception.

This further requires us as retail investors to enhance our awareness and remain vigilant in the face of more unpredictable risks.

Overall, I highly appreciate this regulation; it is precisely what innovation needs, and it represents the ideal functioning of regulation.

Reference link:

https://x.com/SECGov/status/2089784594409103507

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。