U.S. SEC to propose crypto rule for startup exemptions and fundraising

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SEC crypto rule proposal

Highlights

SEC plans to propose a 'Regulation Crypto' rule in July, including temporary registration exemptions for crypto investment contracts and a safe harbor for issuers.
Proposal includes provisions for limited fundraising by crypto startups and aims to provide greater clarity on custody and trading of tokenized securities onchain.
This marks SEC's first major crypto-specific rulemaking under Chairman Paul Atkins, positioning the agency as a central regulatory authority amid stalled Congressional legislation.

July rule proposal takes shape

As first reported by CoinDesk, the SEC’s updated agenda shows "Regulation Crypto" high on its near-term rulemaking list, with a proposal expected in July. The plan would create temporary exemptions from registration for developers launching crypto investment contracts, allow a certain amount of fundraising and set up a safe harbor for issuers stepping back from managerial efforts over a security.

SEC Chairman Paul Atkins first outlined those details in March, and he says the agency is trying to create clearer rules for capital formation involving crypto assets. In a statement on Tuesday, Atkins says the regulator is embracing innovation, seeking to bring more products onshore and provide greater clarity on custody and trading of tokenized securities onchain.

The proposal remains under review at the White House Office of Information and Regulatory Affairs. If issued, it marks the first major crypto-specific rulemaking effort under Atkins, giving the agency a more durable policy tool than staff guidance or statements that can be changed more easily by future leadership.

Regulatory impact for crypto markets

The SEC’s move comes as broader crypto market structure legislation remains stalled in Congress, leaving the regulator as a key focus for industry expectations. Although the agency has already released a taxonomy this year to clarify how digital assets should be defined and treated for regulatory and jurisdictional purposes, a formal rule carries greater legal and operational weight.

The updated agenda also points to other consequential crypto work, including rules on asset custody and crypto market structure. Together with the tokenized securities effort, those measures signal a broader SEC push to reshape how crypto businesses raise capital and operate within U.S. securities regulation.

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