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Key Takeaways
- The SEC’s updated agenda targets a July proposal for “Regulation Crypto,” its first major crypto-specific rulemaking effort
- The rule would create temporary registration exemptions for token issuers and a safe harbor for issuers stepping back from managerial control
- The proposal still faces White House regulatory review, making the July timeline a target rather than a confirmed date
The U.S. Securities and Exchange Commission is positioned to propose its first significant crypto-specific rule as soon as this month, according to an updated regulatory agenda flagged Tuesday. The proposal, known as “Regulation Crypto,” would exempt a range of crypto activities from standard securities registration requirements.
Regulation Crypto Would Ease Registration for Token Issuers
The proposed rule would establish temporary exemptions from registration for developers issuing crypto investment contracts for the first time. It would also permit a defined amount of fundraising under those exemptions and create a safe harbor for issuers that step back from managerial control over a security over time. SEC Chairman Paul Atkins first outlined these details in March.
The rule would mark one of the first substantive SEC rulemaking actions addressing crypto businesses directly. Earlier this year, the agency issued an initial “taxonomy” defining how digital assets should be classified and treated for regulatory and jurisdictional purposes. The SEC is also developing a separate framework for tokenized securities.
Atkins Ties the Rule to Broader Crypto Agenda
Atkins addressed the proposal in a Tuesday statement, placing the crypto agenda ahead of other rulemaking priorities.
“To deliver on President Trump’s goal to ensure that the United States is the crypto capital of the world, we are embracing innovation to bring more products onshore, creating clear rules of the road for capital raising with crypto assets, and providing clarity as to how market participants can custody and facilitate trading of tokenized securities onchain.”
The SEC has advanced crypto policy through rulemaking and guidance during a period in which a broader market structure bill has stalled in Congress. The agency has moved more slowly than initially signaled. When Atkins first discussed Regulation Crypto in mid-March, he said a proposal would follow within “coming weeks,” a timeline that has since extended to several months.
The Rule Still Faces White House Review
The updated SEC agenda lists Regulation Crypto for a July proposal, though the rule remains under review at the White House Office of Information and Regulatory Affairs. That review stage means the July timeline is an agency target rather than a confirmed publication date.
If proposed, the rule would represent the first major crypto-specific rulemaking effort under Atkins’ leadership. The SEC has issued various staff statements and informal guidance on crypto matters, but those positions do not carry the legal weight of a formal rule and can be more easily reversed by future agency leadership. The SEC’s broader regulatory agenda also includes forthcoming rules addressing crypto asset custody and market structure, though the agency has not specified a timeline for those separate rulemaking efforts.
