SEC to unveil new crypto rule proposal this month

The U.S. Securities and Exchange Commission is preparing to unveil a major new regulatory proposal for cryptocurrency this month, aiming to provide long-sought clarity and exemptions for digital asset markets. The proposal, part of the agency's 2026 regulatory agenda released on Tuesday, July 7, represents a significant shift toward formal rulemaking under Chairman Paul Atkins.

The planned rule, provisionally called "Regulation Crypto," is designed to ease compliance burdens for startups and establish clear guidelines for capital formation. Key components include a temporary registration exemption for developers launching digital asset investment contracts, allowing them a transition period of up to four years to mature operationally. Under this framework, startups could raise up to $5 million using simplified disclosures, while more established projects could access an expanded exemption to raise up to $75 million annually, subject to providing audited financial statements.

A central element of the proposal is the creation of a "safe harbor" that would clarify when a digital asset ceases to be considered a security. This legal protection would apply to issuers who complete or...