SEC Seeks Public Input on Crypto Asset Regulation by October 2026

The U.S. Securities and Exchange Commission (SEC) has opened a public comment period for its proposed Regulation Crypto Assets, which aims to create exemptions for crypto issuers. The proposal allows for a $5 million exemption for startups and a $75 million exemption for fundraising, with comments due by October 20, 2026. The draft was published in the Federal Register on August 21, 2026, and includes a 60-day window for feedback.

The proposal includes two main exemptions: the startup exemption, which permits offerings of up to $5 million over a four-year period, and the fundraising exemption, which allows up to $20 million in Tier 1 and $75 million in Tier 2 over a 12-month period. Both tiers require financial disclosures and ongoing reporting, with Tier 2 demanding independent audits. The exemptions are not yet usable and remain proposals until a final rule is enacted.

The proposal also introduces a conditional safe harbor to delink crypto assets from investment contracts once essential managerial efforts are completed. Commissioner Hester M. Peirce emphasized the need for public input, stating, 'The Commission cannot walk that road alone, so please send us your thoughts during the sixty-day comment period.' The SEC is seeking detailed feedback on 149 questions, with the final rule's timing still uncertain.