The SEC’s proposed “Regulation Crypto Assets” provides a new framework for regulatory clarity

On Aug. 18, 2026, the U.S. Securities and Exchange Commission (the SEC) took a significant step towards creating a tailored regulatory framework for offerings of investment contracts involving crypto assets by announcing a proposed regulation titled “Regulation Crypto Assets.” [i] The proposed regulation seeks to provide clarity and encourage participation and investment in transactions previously characterized by regulatory ambiguity.

Background

Crypto assets have not fit neatly into the existing U.S. federal securities regulation framework, and parties seeking to raise funds by selling digital assets have been forced to contend with existing rules written before the proliferation of crypto assets, creating confusion for regulators and market participants and, according to critics, driving investment offshore.

Regulation Crypto Assets follows SEC Chair Atkins’s broader “Project Crypto” initiative to modernize the SEC’s approach to digital assets announced in 2025, the announcement of a joint interpretation by the SEC and the Commodity Futures Trading Commission (the CFTC) on Mar. 17, 2026, and the uncertainty around broader legislation in the form of the Digital Asset Market Clarity Act (the CLARITY Act). [i] On Sept. 15, 2026, the CLARITY Act failed to advance in the Senate after a cloture vote on a motion to proceed fell short of the required votes and remains pending in the Senate.