SEC Proposes New Offering Framework for Certain Crypto Assets
The SEC has proposed a new regulatory framework, 'Regulation Crypto Assets,' to clarify how certain crypto assets interact with securities laws. The proposal introduces new registration exemptions and disclosure requirements for investment contracts involving non-security crypto assets.
Why it matters
This proposal represents a significant effort by the SEC to provide regulatory clarity for the crypto industry, potentially easing capital formation for startups.
On August 18, 2026, the Securities and Exchange Commission (SEC) proposed Regulation Crypto Assets, a new regulatory framework for certain “covered investment contracts” involving crypto assets. “Covered investment contract” would be defined as an investment contract to which a crypto asset is subject, provided that the crypto asset itself is not a security. The proposal would create two new exemptions from Securities Act registration, establish tailored disclosure and reporting requirements, provide a conditional safe harbor addressing when a covered investment contract has ceased to exist and the underlying crypto asset would no longer be deemed to be subject to such covered investment contract for purposes of the definition of a “security” under the Securities Act and the Exchange Act, and preempt certain state securities registration and qualification requirements.
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