SEC Crypto Proposal Offers New Paths for Crypto Asset Issuers

Last updated: 

August 20, 2026

SEC Crypto News: The Securities and Exchange Commission proposed Regulation Crypto Assets, a framework that would allow eligible projects to raise up to $75 million in any 12-month period without registering the offering under the Securities Act. The proposal also includes a conditional safe harbor under which a crypto asset could be deemed not subject to an investment contract if specified conditions are met.

• Fundraising exemption: Up to $75 million per 12-month period, with financial statements and ongoing reporting requirements.
• Startup exemption: Up to $5 million over a four-year period, with principles-based narrative disclosures.
• Investment contract safe harbor: A conditional path under which a crypto asset could be deemed not subject to an investment contract.

The proposal creates two exemptions from the Section 5 registration requirements for certain investment contracts involving crypto assets, which the SEC refers to as covered investment contracts.