‘Regulation Crypto’ Signals a Major Shift in the US Digital Asset Landscape

• The SEC published its proposed “Regulation Crypto” framework last week, opening a 60-day period for the public to weigh in.
• The U.S. Securities and Exchange Commission’s proposal outlines how the regulator wants to approach fundraising by digital asset companies, including token-based capital raises.

What ‘Regulation Crypto’ Covers

• The proposal details how crypto companies and developers could raise funds through tokens while staying within the SEC’s securities framework.

Why the Proposal Matters

• The SEC has issued a range of crypto-related staff statements under the current administration but has moved more slowly on formal rulemaking. The new proposal marks a significant step toward establishing formal rules, although the agency still has to finalize them before companies can begin adapting to the requirements.
• Lewis Cohen, a partner at Cahill Gordon & Reindel LLP, described the proposal as a strong step in the right direction and credited the SEC for the effort involved.
• Cohen said the industry still needs the Clarity Act to provide the broader regulatory certainty that crypto businesses are seeking.
• President Donald Trump also urged lawmakers to pass the Clarity Act during a press conference last Wednesday attended by executives from major cryptocurrency and traditional financial firms.
• SEC Chairman Paul Atkins and CFTC Chairman Mike Selig took part in the event, alongside Coinbase CEO Brian Armstrong, Kraken CEO Arjun Sethi and other industry executives. The meeting came one day before the CFTC’s Innovation Advisory Committee convened.
• During that meeting, Selig said the CFTC was prepared to move ahead with its own rulemaking if Congress does not approve the Clarity Act.

What’s on the Agenda

• No major regulatory hearings or meetings are currently scheduled for this week.