SEC Proposes New Regulation Crypto Assets

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The U.S. Securities and Exchange Commission announced on Aug. 18, 2026 that it proposed new rules titled "Regulation Crypto Assets," creating a framework for certain investment contracts involving crypto assets, following its March 2026 interpretation on how federal securities laws apply to crypto assets and transactions. The proposal includes two exemptions from Securities Act of 1933 registration requirements: a one-time exemption permitting offerings of up to $5 million during a four-year period, and a second exemption permitting offerings of up to $75 million during each 12-month period, with issuers under the second exemption required to provide financial statements and be subject to ongoing reporting requirements. The proposed rules also include a conditional safe harbor from the term "investment contract" in the definitions of "security" under the Securities Act of 1933 and the Securities Exchange Act of 1934, and would preempt state securities law registration and qualification requirements for offers and sales of securities issued under a Regulation Crypto Assets exemption, as well as certain secondary market transactions. The SEC stated that the public comment period will remain open for 60 days following publication of the proposing release in the Federal Register.

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