SEC Reg Crypto Framework: A Lifeline for Legacy Tokens
Galaxy Research has made a significant analysis of the SEC's proposed Reg Crypto framework, suggesting that it could provide hundreds of existing tokens with a formal route out of investment contract status.
The framework, which was published in the Federal Register on August 21 under docket S7-2026-27, would allow issuers to file a transition report and certify that they have met certain conditions, effectively terminating the related investment contract under the Securities Act and the Securities Exchange Act.
Galaxy Research's head of firmwide research, Alex Thorn, stated that the first visible effect could be the resolution of securities-law questions surrounding tokens already in circulation, rather than a fresh wave of public token sales.