SEC Unveils Reg Crypto Framework with Exemptions and Conditional Safe Harbor

The U.S. Securities and Exchange Commission (SEC) has released its long-awaited 'Reg Crypto' framework to regulate certain investment contracts involving crypto assets.

This move follows the SEC's interpretation in March 2026 clarifying how federal securities laws apply to certain crypto assets and transactions.

The proposed rules, known as 'Regulation Crypto Assets', aim to create a framework for certain crypto investment contracts. Two exemptions from registration requirements under the Securities Act of 1933 are included: one allowing offerings up to $5 million over four years and another permitting offerings up to $75 million annually.

The SEC also introduced a conditional safe harbor from the term 'investment contract' in the definitions of 'security' in the Securities Act of 1933 and the Securities Exchange Act of 1934. This would exempt certain crypto assets from being considered securities under specific conditions.