SEC Proposes Reg Crypto, Boosting Prospects for ETH, SOL, and BNB
The US Securities and Exchange Commission (SEC) has proposed new regulations for crypto assets, dubbed Reg Crypto. This move aims to provide clarity on how startups can sell newly issued tokens to US investors.
Grayscale Research believes that Ethereum (ETH), Solana (SOL), and BNB Chain are potential winners from these new rules. The asset manager points out that when founders raise funds through token sales, the activity and value captured by the hosting networks will increase demand for these assets.
The market is already responding to the proposed regulations, with ETH jumping 15% in 24 hours to $2,179, SOL at $86.98, and BNB near $630. Grayscale has also invested heavily in this theme, making BNB its largest holding in its Smart Contract Fund with a 30.6% weighting.
The SEC's Reg Crypto plan creates two fundraising lanes: one for up to $5 million over four years with a one-time option and another for $75 million per year requiring financial statements and ongoing reports. The proposal also gives tokens an exit from securities treatment once their issuer completes all essential managerial efforts, known as the Investment Contract Safe Harbor.
SEC Commissioner Mark Uyeda supports this shift, stating that clear rules will reduce the incentive for founders to launch offshore. A 60-day comment period opens once the plan reaches the Federal Register, followed by a separate innovation exemption for trading rules later this year.