The SEC proposed its first major crypto rule on Tuesday, unveiling “Regulation Crypto Assets” to create clearer pathways for digital asset offerings as crypto executives gather at the White House today to discuss regulatory clarity with President Trump.
The proposal includes two exemptions from securities registration requirements specifically tailored for crypto companies. The startup exemption would allow issuers to raise up to $5 million over a four-year period, while the fundraising exemption would permit raises of up to $75 million within any 12-month stretch, according to the SEC press release.
Under both exemptions, companies must provide investors with narrative, principles-based disclosures rather than the dense legal filings typically required of public offerings. The second exemption also requires issuers to publish financial statements and meet ongoing reporting duties, the SEC stated.
The framework also introduces a conditional safe harbor that could eventually place certain tokens outside the legal definition of a security once an issuer completes or permanently ceases the managerial efforts it promised investors. Additionally, the rule would preempt conflicting state securities law registration requirements, sparing issuers from having to comply separately with individual state regimes.
SEC Chair Paul Atkins framed the package as a “minimum effective dose” of oversight, protecting investors while leaving builders maximum room to innovate. The proposal follows the SEC’s March 2026 interpretation clarifying how federal securities laws apply to certain crypto assets and transactions.
Industry Welcomes Proposal Amid Congressional Stall
Industry groups have broadly welcomed the SEC’s move, with leaders calling its terms considerably more generous than anticipated. Summer Mersinger, CEO of the Blockchain Association, said the proposal finally delivers the tailored regulatory clarity the sector has sought for years. Cody Carbone, CEO of the Digital Chamber, likewise praised the plan, pledging support in helping the industry expand within the US rather than abroad.
The SEC’s action comes roughly a week and a half after the US Senate left Washington for its summer recess without advancing the Digital Asset Market CLARITY Act, the industry’s flagship bill that would split oversight of digital assets between the SEC and the Commodity Futures Trading Commission. SEC Chair Atkins has argued that only Congress can deliver a lasting, “future-proofed” framework, yet the regulator decided not to wait, instead using its existing powers to offer the industry certainty.
The proposal will remain open for public comment for 60 days following publication in the Federal Register, meaning its provisions could still change before any final rule is adopted.
Sources
- SEC — proposed Regulation Crypto Assets with two exemptions from securities registration, safe harbor for crypto assets, and preemption of state requirements
- Euronews — industry reaction from Blockchain Association and Digital Chamber; context on Congressional stall of CLARITY Act; details on exemption amounts and requirements
