SEC crypto regulatory initiative

In late June 2026, SEC Chair Paul Atkins introduced “Project Crypto,” a framework intended to give clear guidance on whether a token is a security, classify most token categories as non‑securities, and shift enforcement toward fraud and market manipulation while coordinating with the CFTC.

By late July, the SEC expanded the effort with a formal “Regulation Crypto” proposal. The draft outlined three statutory exemptions—a startup exemption for early‑stage issuers, a fundraising exemption for larger rounds, and a safe‑harbor provision to remove token status after initial activities. It also called for stricter rules on exchanges and brokers, including custody, liquidity, and documentation requirements, and singled out platforms such as Ethereum and Solana as particularly affected.

In August 2026, the SEC scheduled an open meeting for August 14 to vote on the 400-page “Regulation Crypto” proposal. This move marks the agency’s first attempt at formal rulemaking for digital assets rather than relying on enforcement actions. The proposal specifies that the startup exemption would allow raising approximately $5 million via whitepaper disclosures, while the fundraising exemption would permit up to $75 million involving audited financials. The safe harbor would allow tokens to exit securities classification once networks achieve sufficient decentralization.

Chair Atkins indicated the agency is prepared to enact these rules even without new congressional legislation, such as the delayed Digital Asset Market CLARITY Act, in an effort to resolve legal confusion caused by applying traditional securities tests to blockchain networks.