California’s Department of Financial Protection and Innovation opposed the SEC’s proposed crypto offering rules in a comment letter, warning that limits on state registration and qualification requirements could remove a layer of screening for investors. States would still be able to investigate securities fraud, deceit and unlawful broker or dealer conduct, and federal antifraud rules would still apply.
Under the proposal, qualifying issuers could raise up to $5 million over four years through a startup exemption or up to $75 million per 12-month period through a separate fundraising exemption. Both routes would require written disclosures about the project and its risks; the fundraising route would also require financial statements and ongoing reports.
