SEC Proposes Reg CA to Clarify Crypto Asset Regulation

The U.S. Securities and Exchange Commission (SEC) has proposed Regulation Crypto Assets (Reg CA), which aims to clarify the investment contract status of existing tokens rather than fully reopening the market for new token issuances.

The proposal, published in the Federal Register on August 21, 2026, allows for public comments until October 20. It includes a startup exemption allowing up to $5 million over four years and a fundraising exemption allowing up to $75 million for 12 months.

The SEC's official explanation highlights that Reg CA is not a signal of an 'ICO 2.0.' The proposal has been met with mixed reactions from the industry, with some welcoming it as an important step toward clear rules in the U.S. digital asset market and others cautioning that congressional legislation is necessary for long-term certainty.

SEC Commissioner Paul S. Atkins stated that Reg CA provides capital raising pathways under federal securities laws for crypto asset companies and market participants, but long-term rules would require congressional legislation.