US SEC proposes new regulation for crypto assets 19 August 2026US Reporter: Matthew Challis
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The US Securities and Exchange Commission (SEC) has proposed new rules titled “Regulation Crypto Assets”, in a bid to establish a clear and “fit-for-purpose” framework for certain crypto asset investment contracts.
The rules include two exemptions from the registration requirements of the 1933 Securities Act, tailored to the digital asset class.
The first is a one-time dispensation allowing offerings up to US$5 million over four years, and the second would allow up to US$75 million during each 12-month period.
Under these exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors, and, under the second proposal, provide financial statements and be subject to ongoing reporting duties.
Additionally, the rules would also contain a conditional safe harbour from the term investment contract in the definitions of both the Securities Act of 1933 and the 1934 Securities Exchange Act.
If the conditions of the safe harbour are met, a crypto asset would be deemed not to involve an investment contract or security.
The regulatory body’s rules would preempt state securities law registration and qualification requirements for exempt primary sales and specific secondary market transactions.
The SEC says its proposal aims to address barriers to responsible capital formation within domestic crypto markets while simultaneously preserving key investor protections under federal securities laws.
Commenting on the rules, Paul S Atkins, SEC Chairman, says: “As we continue the Commission’s efforts to provide clarity for crypto markets, and as Congress works to establish a lasting regulatory framework, Regulation Crypto Assets seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws.
“Advancing this regulatory framework is a key element in our strategy to advance the rule books for the modern era and another step by the Commission to onshore innovation in crypto asset markets for generations to come.”
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Image: Kristina_Blokhin/stock.adobe.com 