The US Securities and Exchange Commission has introduced its first comprehensive regulatory framework for digital assets, launching “Regulation Crypto Assets” after the Senate failed to advance the Digital Asset Market Clarity Act before August recess.
New rules for token issuers
SEC Chair Paul Atkins confirmed that the proposed framework aims to create legal, streamlined fundraising channels for companies working with digital assets. The initiative comes in response to ongoing uncertainty around how token offerings should be regulated and seeks to clarify the treatment of crypto assets under federal law.
Under the proposal, token issuers have two distinct fundraising options. Startups can raise up to $5 million over a four-year period, with requirements to disclose key details publicly at the start and end of this timeframe. This path is intended to give early-stage ventures an accessible path to capital formation.
For larger initiatives, the framework allows fundraising up to $75 million within any 12-month period. This option includes stricter compliance, such as submitting detailed financial statements and ongoing reporting obligations. All fundraising efforts must provide what the SEC describes as “principles-based narrative disclosures,” ensuring investor transparency.
Regardless of the route chosen, companies are required to adhere to existing anti-fraud provisions and prohibitions against market manipulation.
Safe harbor and investor protections
A key component of the SEC’s proposal is a safe harbor that would protect certain crypto tokens from being classified as investment contracts, provided specific management responsibilities are fulfilled by the issuer. If these conditions are met, such tokens would not be subject to the full scope of securities regulations.
After an issuer completes all required management tasks, the related investment contract would not be considered a security, in alignment with previous SEC guidance.
Atkins described the new regulatory structure as a means to foster crypto innovation within the United States. This marks a significant evolution from earlier ambiguity over the legal status of many crypto projects.
Ongoing need for legislative action
Despite this regulatory advance, Atkins emphasized that Congressional legislation remains vital for enduring oversight. He stated robust lawmaking is needed to ensure rules for digital assets cannot easily be reversed by future regulators.
The Senate recently opened proceedings on the CLARITY Act but postponed final consideration until after lawmakers return in September. Congress faces a tight legislative window before the next recess and the convening of the new Congress in 2027.
White House crypto adviser Patrick Witt warned that, in the absence of new laws, regulators may act independently to establish far-reaching rules for the crypto sector.
In addition, the SEC had initially planned to discuss the regulatory proposal at its August 14 meeting, which did not occur due to a scheduling conflict.
Industry and market reactions
Leaders within the crypto industry welcomed the framework. Cody Carbone, CEO of the Digital Chamber, highlighted that the SEC incorporated feedback from a range of crypto businesses and committed to further engagement.
Crypto companies noted the SEC’s willingness to listen to industry suggestions and continue collaborating on regulations that support innovation.
The public comment period for the proposed rules will begin upon publication in the Federal Register, allowing stakeholders 60 days to submit feedback.
As regulators seek to reshape traditional investment models, a broader transformation is underway: Wall Street is migrating toward Web3. Investors are increasingly turning to platforms like 1stepSwap, which allow them to hold shares of major US companies, along with gold and silver, directly in their crypto wallets. By tokenizing real-world assets and instantly securing optimal market prices, these platforms eliminate intermediaries, reflecting a growing trend in asset ownership and trading.
