{"id":14768,"date":"2026-10-21T20:01:47","date_gmt":"2026-10-21T20:01:47","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=14768"},"modified":"2026-10-21T20:01:47","modified_gmt":"2026-10-21T20:01:47","slug":"secs-75-million-crypto-fundraising-plan-faces-bank-backlash-and-threats-of-legal-action","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=14768","title":{"rendered":"SEC’s $75 million crypto fundraising plan faces bank backlash and threats of legal action"},"content":{"rendered":"

<\/p>\n

\n

US banks warned that proposed SEC crypto exemptions could drain deposits as investment managers pushed for broader access to digital assets.<\/p>\n

The competing demands emerged as the Securities and Exchange Commission’s (SEC) Oct. 20 comment deadline for its proposed Regulation Crypto Assets expired, exposing divisions over how far regulators should go in easing restrictions on cryptocurrency fundraising and investment.<\/p>\n

The proposal, published Aug. 21, would allow qualifying crypto projects to raise up to $5 million over four years or $75 million annually without registering their investment-contract offerings under the Securities Act. Issuers would remain subject to disclosure requirements and federal antifraud provisions.<\/p>\n

It would also establish a conditional safe harbor allowing crypto assets to cease being subject to investment contracts once issuers complete or permanently abandon promised essential managerial work and file a transition report with the SEC.<\/p>\n

\n

Related Reading<\/span><\/p>\n

Why the SEC\u2019s $75 million crypto path is not the same deal Congress is offering<\/h3>\n<\/p>\n

<\/span> <\/div>\n

Submissions from Bitwise, Nasdaq, the Alternative Investment Management Association, community banks and investor advocates reveal competing priorities that could shape the final regulations.<\/p>\n

Wall Street and crypto firms push for broader token access<\/h2>\n

Asset manager Bitwise wants the SEC to make it easier for investment firms to determine which cryptocurrencies they can hold in exchange-traded products, indexes and private funds.<\/p>\n

In its Oct. 19 letter, Bitwise said fund sponsors currently face substantial uncertainty when assessing whether a token remains subject to an investment contract.<\/p>\n

The firm wants asset managers to rely on issuers’ public transition reports after an SEC review period expires without a challenge. It also requested protection for good-faith reliance if regulators subsequently dispute an issuer’s classification.<\/p>\n

Such protections could reduce the legal risks of adding cryptocurrencies to investment products, although separate fund approval and compliance requirements would still apply.<\/p>\n

The Alternative Investment Management Association, representing hedge funds and other alternative asset managers, wants the proposed safe harbor extended to investment adviser and fund regulations.<\/p>\n

It also requested clearer custody requirements and resale protections, arguing that managers need consistent rules for acquiring, holding and disposing of digital assets.<\/p>\n

Meanwhile, Hyperliquid Policy Center wants the SEC to provide protection while crypto projects remain under development, rather than requiring issuers to complete or abandon their promised work first.<\/p>\n