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US Securities Regulator Proposes Long-Awaited Crypto Rules
The U.S. SEC has proposed a new regulatory framework designed to provide clear capital-raising pathways for crypto companies, featuring token issuance exemptions of up to $75 million and a safe harbor from investment contract classification. Introduced under SEC Chair Paul Atkins, the draft rule is currently open for a 60-day public comment period.
The U.S. Securities and Exchange Commission proposed a new regulatory framework for crypto assets on August 18, 2026, the first major crypto-focused move under President Donald Trump’s administration.
The plan would carve out certain crypto companies and token offerings from standard U.S. securities rules, making it easier for crypto companies to raise capital and issue tokens under federal law.
A proposal built around capital-raising pathways
SEC Chair Paul Atkins, appointed by Trump, framed the proposal as an effort to give crypto entrepreneurs and market participants clear routes to raise capital under federal securities laws. Crypto companies have long argued that their tokens function more like commodities than securities and shouldn’t be subject to most SEC rules, and Atkins has backed that position, a stance that shaped the direction of this rulemaking.
The proposal follows a broader shift in posture at the SEC under Republican leadership. Over the past year, the agency rescinded strict crypto accounting guidance and dropped lawsuits against Coinbase, Binance, and other platforms it had previously accused of violating securities rules.
What the exemptions would allow
Two capital-raising exemptions sit at the center of the draft rule. The first is a one-time exemption letting a crypto company issue up to USD 5 million in tokens over a four-year period. The second allows offerings of up to USD 75 million within each 12-month period, though issuers relying on it would still need to provide financial statements and meet ongoing reporting obligations.
Token issuers using either exemption would still have to disclose specified information to investors. The proposal also includes a safe harbor that could exclude a crypto asset from being classified as an investment contract, provided certain conditions are met.
Industry response has been positive
Trade groups welcomed the announcement. Summer Mersinger, CEO of the Blockchain Association, called the plan an important step toward fit-for-purpose rules for digital asset markets. Cody Carbone, CEO of The Digital Chamber, said his organization would work with the SEC to help the industry operate onshore in the United States.
Not everyone expects the proposal to reshape the market on its own. “If passed, this may invigorate the smaller altcoin market,” said Juri Kulikov, a digital assets licensing advisory expert at LegalBison. “However, considering the larger bear market in crypto, it is unlikely to make a huge impact unless something drastically changes.”
Why the SEC is acting now
The crypto industry has poured a huge amount of money into lobbying Congress for legislation that would give it firmer legal ground to stand on. That push has gone nowhere in the Senate, so the SEC has moved on its own instead.
That approach has a limitation the industry is already pointing out. Reuters reported that some executives worry that rules set through SEC rulemaking, rather than through statute, stay exposed to reversal or tightening by a future administration in a way legislation would not be.
What happens next
The proposal isn’t final. It will be open for public comment for 60 days once published in the Federal Register, and the SEC could revise the exemption thresholds, disclosure requirements, or safe harbor conditions before adopting a final rule.
Where this leaves crypto founders eyeing the US market
For founders and operators structuring a token issuance, an exchange, or a broader U.S. crypto market entry, this proposal is a signal of direction. The thresholds and safe harbor conditions described here are what the SEC put forward for comment.
LegalBison tracks regulatory developments like this one the way it tracks any jurisdiction: what the actual thresholds turn out to be, what the disclosure obligations require in practice, and whether the safe harbor holds up once real issuers start relying on it.
