TLDR
- The SEC proposed new crypto rules called “Regulation Crypto Assets” after Congress failed to pass the CLARITY Act
- Crypto companies could raise up to $5 million in tokens over four years or $75 million annually under the proposal
- A safe harbor provision would protect certain crypto assets from being classified as “investment contracts”
- The public has 60 days to comment after the proposal is published in the Federal Register
- SEC Chair Paul Atkins still says legislation is essential for long-term, durable crypto regulation
The SEC has put forward its first formal crypto rule proposal under Chair Paul Atkins, stepping in after the Senate failed to advance the Digital Asset Market Clarity Act before its August recess.
🚨 TODAY: The SEC proposed new rules, “Regulation Crypto Assets,” that would create a clear and fit-for-purpose framework for certain investment contracts involving crypto assets. pic.twitter.com/SAA2sErMXF
— U.S. Securities and Exchange Commission (@SECGov) August 18, 2026
The proposed framework, called “Regulation Crypto Assets,” is designed to give crypto companies a path to raise capital without automatically triggering securities laws.
Two Tracks for Crypto Fundraising
The proposal offers two options for token issuers. The first is a startup track allowing companies to raise up to $5 million in tokens over a four-year period, with public filings required at the start and end of that window.
The second track allows offerings of up to $75 million in a single 12-month period. This option comes with stricter requirements, including financial statement disclosures and ongoing reporting obligations.
Both tracks require companies to provide what the SEC calls “principles-based narrative disclosures” to investors. Both also fall under existing anti-fraud and market manipulation rules.
Safe Harbor for Crypto Assets
The proposal includes a safe harbor that would allow certain crypto tokens to avoid being classified as “investment contracts” under securities law.
Once a token issuer has completed all promised management activities, the investment contract tied to that token would no longer be considered a potential security. This is in line with guidance the SEC had previously issued.
Atkins said the agency is “charting a new course” to help crypto innovation grow in the United States.
Congress Still in the Picture
Despite the SEC’s move, Atkins made clear that legislation from Congress is still needed. He said permanent rules need to be “future-proofed” against potential reversal by future regulators.
The Senate filed cloture on the CLARITY Act before breaking for recess, meaning senators could take it up again in mid-September. After returning, lawmakers have about 14 days in session before another break ahead of November elections, and then 22 days before the new Congress is sworn in in 2027.
White House crypto adviser Patrick Witt said regulators would “let loose” on crypto rules if Congress fails to act.
The rule proposal had been expected to come out of an August 14 SEC meeting, which was cancelled at the last minute due to what the agency called an “unforeseen scheduling issue.”
Industry groups welcomed the news. Digital Chamber CEO Cody Carbone said the SEC incorporated suggestions from crypto firms and pledged to keep working with the agency.
The public comment period opens once the proposal appears in the Federal Register, with a 60-day window for submissions.
