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SEC Proposes Regulation Crypto Assets With New Offering Exemptions

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The U.S. Securities and Exchange Commission has proposed rules titled Regulation Crypto Assets , a framework the agency says would create a tailored securities-offering regime for certain investment contracts involving crypto assets.

The SEC announced the proposal on Aug. 18. It follows the Commission’s March 2026 interpretation on how federal securities laws apply to certain crypto assets and related transactions, according to the release.

Two proposed exemptions

The proposal includes a one-time exemption for offerings of up to $5 million during a four-year period and another exemption for offerings of up to $75 million in each 12-month period. Under both, issuers would need to provide principles-based narrative disclosures.

For the larger exemption, the SEC said issuers would also need to provide financial statements and comply with ongoing reporting requirements. The agency’s press release presents these as proposed rules, not as rules already in force.

Conditional safe harbor

The SEC also proposed a conditional safe harbor relating to the term investment contract in the definitions of security under the Securities Act and Exchange Act. The agency said that, if the proposed conditions are met, a crypto asset would be deemed not to be subject to an investment contract for those definitions.

The release further says the proposal would preempt certain state registration and qualification requirements for offerings under the new exemptions and certain secondary-market transactions.

Comment period remains open

The public comment period will remain open for 60 days after publication of the proposing release in the Federal Register. That process can result in changes, a final rule, a delay or no final rule; the announcement does not itself change compliance obligations.

Market participants should therefore treat the release as a proposal and consult the proposed-rule text, fact sheet and future Commission notices for the operative details.

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