SEC Set to Launch First Major Crypto Rulemaking With ‘Regulation Crypto’

The U.S. Securities and Exchange Commission (SEC) is preparing to take a major step toward establishing clearer crypto regulations by proposing its first significant digital asset rulemaking initiative, known as “Regulation Crypto.”

The SEC has scheduled an open meeting for August 14, when its three-member commission is expected to consider formally proposing the regulation and opening it for public comment. The initiative is a key part of SEC Chairman Paul Atkins’ broader strategy to provide greater regulatory certainty for cryptocurrency companies operating in the United States.

Regulation Crypto is expected to establish a tailored framework for certain investment contracts involving digital assets. The proposal could give crypto startups and blockchain projects a clearer route to raise capital without automatically becoming subject to the SEC’s full registration requirements.

The framework may also create a pathway for digital asset projects to move outside SEC jurisdiction once their developers or sponsors are no longer actively managing the project. Such provisions could provide important clarity over when a crypto asset or related transaction remains subject to U.S. securities laws.

The SEC’s move comes shortly after the Senate failed to advance the Digital Asset Market Clarity Act before its August recess. That legislation was intended to establish a broader legal framework governing the U.S. cryptocurrency market. With congressional action delayed, Regulation Crypto could become an important near-term mechanism for defining federal crypto rules.

The SEC has already released several policy and staff statements addressing digital assets, but formal rulemaking carries greater legal durability and is generally more difficult for future administrations to reverse.

However, Regulation Crypto will not become effective immediately. Following the SEC’s expected proposal, stakeholders will have an opportunity to submit public comments, typically over several months. The agency may then revise the proposal before considering a final rule.

The initiative adds to the SEC’s expanding crypto policy agenda, which includes work with the Commodity Futures Trading Commission on digital asset classifications and ongoing efforts to establish a regulatory approach for tokenized securities.

While Atkins continues to emphasize the importance of congressional legislation, the SEC’s Regulation Crypto proposal could mark a significant turning point for U.S. crypto regulation and digital asset fundraising.