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SEC Proposes Regulation Crypto Assets to Create Tiered Token‑Sale Paths

A proposal that creates two fundraising exemptions, a conditional safe harbor tied to issuer decentralization, a public comment window ending October 20, 2026.

Overview

  • The SEC published Regulation Crypto Assets on August 18, 2026, formally proposing rules to let token issuers sell tokens under structured exemptions instead of full securities registration.
  • The rule would create a one‑time startup exemption that allows up to $5 million in fundraising over four years and a recurring exemption that permits up to $75 million in any 12‑month period.
  • Reg CA includes a conditional safe harbor that would let certain tokens be treated as non‑securities once the original issuer’s managerial efforts are completed or permanently discontinued.
  • The proposal ties fundraising access to investor protections by requiring tiered disclosures, audited financials for larger raises, and antifraud obligations to limit earlier‑era abuses.
  • Public input will shape the final rule: as of Aug. 27 there were 31 posted comments, the comment period closes Oct. 20, 2026, and the plan follows stalled congressional legislation and parallel CFTC contingency planning.