The SEC proposed "Regulation Crypto Assets" on Tuesday, creating two new registration exemptions for crypto offerings and a conditional safe harbor from investment-contract status. The plan would also block states from imposing extra registration rules on qualifying offers.
The U.S. Securities and Exchange Commission proposed new rules on Tuesday that would create a clear and fit-for-purpose framework for certain investment contracts involving crypto assets, according to a news release. The proposal, titled "Regulation Crypto Assets," follows the Commission's March 2026 interpretation that clarified how federal securities laws apply to certain crypto assets and related transactions.
Two exemptions from registration
The proposed rules include two exemptions from registration requirements under the Securities Act of 1933. The first would permit offerings of up to $5 million during a four-year period. The second would allow offerings of up to $75 million during each 12-month period. Both exemptions would require issuers to provide principles-based narrative disclosures to investors, and the larger exemption would also mandate financial statements and ongoing reporting.
Safe harbor and state preemption
The proposal also includes 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. If the safe harbor conditions are met, a crypto asset would not be subject to an investment contract classification under those definitions. The proposed rules would also preempt state securities law registration requirements for offers and sales under the Regulation Crypto Assets exemptions and certain secondary market transactions.
According to SEC Chairman Paul S. Atkins, the rules seek to "provide crypto asset entrepreneurs and market participants with clear pathways to raise capital", as Congress works to establish a lasting regulatory framework. The public comment period will remain open for 60 days after publication in the Federal Register.
Sources: Economy News, Cryptocurrency News
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