The U.S. Securities and Exchange Commission (SEC) has put forward a proposed token securities framework that could allow qualifying crypto projects to raise as much as $75 million from investors. The plan, which remains at the proposal stage, is designed to give token issuers a clearer path to fundraising under securities rules.

What the proposed framework would do

A token securities framework is a set of rules that treats certain crypto tokens as securities — like stocks or bonds — and sets out how projects can legally sell them to raise money. The SEC’s proposal spells out that path in an official rulemaking document.

Until now, the agency has largely assessed tokens case by case, leaning on the Howey test — a standard drawn from a 1946 Supreme Court ruling involving citrus grove investments — to determine whether a digital asset is an investment contract and therefore a security.

The headline figure is the ceiling: under the proposal, an eligible crypto project could raise up to $75 million, according to the SEC filing.

The framework is aimed at the projects and issuers carrying out the fundraising, not just the platforms that host token sales. It sits alongside the broader package known as Reg Crypto, which the agency has laid out with tiered exemption levels of $5 million and $75 million (related coverage).

Why a $75 million cap could matter

For early-stage crypto teams, a defined ceiling is a planning tool: it tells founders exactly how much they can raise before reaching the limit of this specific exemption.

The number also has a familiar ring in traditional finance: $75 million matches the ceiling under Tier 2 of Regulation A+, the SEC’s existing exemption that lets smaller companies raise funds from the public without a traditional initial public offering, giving readers a benchmark already on the agency’s books.

A capped, rules-based path can lower the guesswork that has long surrounded token sales in the United States. Projects that once worried about whether a token counted as a security would instead follow a written framework — though that clarity comes paired with disclosure and eligibility conditions.

The tradeoff is compliance. Raising under a securities framework means meeting the SEC’s disclosure obligations, which cost time and money and may not suit the smallest projects. It is the same tension visible across the SEC’s wider push, which followed the stalling of the Clarity Act in Congress (related coverage).

What happens next

This is a proposal, not a final rule. Proposed rules typically go through a public comment period before the agency decides whether to adopt, change, or drop them.

The broader rule package has already drawn scrutiny, including a scheduled commission vote on the roughly 400-page crypto regulation proposal (details). Crypto policy commentator Miles Jennings has weighed in publicly on the SEC’s direction (post on X).

For anyone holding even a little crypto or watching the space, the practical takeaway is simple: nothing is law yet, so watch for the final rule and the comment period before assuming the $75 million path is open.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.