SEC Proposes Regulation Crypto Assets to Clarify Security Status
The US Securities and Exchange Commission (SEC) has proposed a new rule, Regulation Crypto Assets, which aims to clarify when a token is no longer considered a security. The proposal was printed in the Federal Register on August 21, 2026, starting a 60-day comment period that ends on October 20, 2026.
The regulation creates two exemptions from registration requirements for issuers and describes conditions under which a crypto token is no longer treated as part of an investment contract. The proposal seeks to ease capital formation while protecting investors, according to the agency.
The proposed safe harbor shifts the weight by stating that if an issuer meets certain conditions, the investment contract is considered ended. This means that if an issuer has completed or permanently ceased all essential entrepreneurial efforts and filed a transition report on Form TR with the Commission, the token is deemed no longer covered by securities definitions.
The regulation also includes two exemptions from registration requirements: the startup exemption permits issuances of up to $5 million within four years, allowing for sales to retail investors without any cap per investor. The fundraising exemption allows issuers to raise up to $75 million in a 12-month period.