SEC Plans to Propose New Crypto Regulation Rules This Month
Alina Collins
The SEC may propose "Regulation Crypto" as early as this month, offering crypto firms securities-registration exemptions — one of the agency's most substantive rulemaking moves on crypto to date.
What would this rule actually do?
The proposal would create a temporary registration exemption for developers launching crypto investment contracts, allowing fundraising up to a certain size without full securities registration.
It would also establish a "safe harbor" — a transitional shield letting issuers wind down securities functions without facing immediate enforcement action — for projects moving away from securities compliance.
This means → early-stage crypto projects could see compliance costs drop sharply, no longer needing the item-by-item approval process of traditional securities offerings.
Why is this time different from past guidance?
The SEC has previously issued multiple staff statements and guidance documents, but these lack the legal force of a formal rule and can be easily reversed by future leadership.
In plain terms = past "guidance" was essentially a verbal promise — a new chair could simply ignore it. A formal rule, once effective, requires a full repeal process to overturn. The stability is fundamentally different.
This would be Chair Paul Atkins's first major crypto-specific rule since taking office, marking the SEC's shift from case-by-case enforcement to proactive rulemaking.
What did Atkins say?
We are embracing innovation, bringing more products onshore, establishing clear rules for crypto asset fundraising, and clarifying how market participants can custody and facilitate on-chain trading of tokenized securities.
Paul Atkins
SEC Chair
(Tuesday statement, responding to President Trump's goal of making the U.S. the global crypto capital)
Where is it stuck — and what comes next?
The proposal is still under review at the White House Office of Information and Regulatory Affairs. Atkins said in March it would come "within weeks," but the timeline has slipped by months.
The SEC's agenda also lists other crypto-related rules covering asset custody and crypto market structure, though timelines remain unclear.
This means → with congressional crypto legislation moving slowly, whether the SEC can deliver a stable enough compliance framework through administrative rulemaking is the key test of this regulatory cycle's effectiveness.
Content is for reference only, not financial advice.