SEC Unveils Reg Crypto Framework Amid CLARITY Act Gridlock

The US Securities and Exchange Commission (SEC) has released its long-awaited 'Reg Crypto' framework to regulate certain investment contracts involving crypto assets. This move comes as the CLARITY Act stalls in the Senate, with the regulator providing much-needed clarity for the crypto industry.

In a press release, the Commission announced its proposed rules, 'Regulation Crypto Assets', which would create a framework for certain crypto investment contracts. The proposal follows the SEC's March 2026 interpretation clarifying how federal securities laws apply to certain crypto assets and transactions involving them.

The Reg Crypto framework proposes two exemptions from registration requirements under the Securities Act of 1933 for certain crypto investment contracts. The first exemption would permit offerings of up to $5 million during a four-year period, while the second would allow offerings of up to $75 million per year. Under both exemptions, issuers would be required to provide narrative disclosures and possibly financial statements.