The U.S. Securities and Exchange Commission says it's poised to release its first major crypto rule effort, a proposal that would exempt a number of crypto activities from securities regulation.
The agency's updated agenda includes an expectation to propose the rule in July.
The U.S. Securities and Exchange Commission is set to tackle a new crypto rule proposal as soon as this month that would shield crypto businesses from securities regulatory demands in significant ways, according to an updated agenda flagged on Tuesday.
The idea known as "Regulation Crypto" would establish temporary exemptions from registration for developers first pushing crypto investment contracts, would allow a certain amount of fundraising and would set up a safe harbor for issuers that are backing away from managerial efforts over a security — details first outlined by SEC Chairman Paul Atkins in March.
It's one of the first significant SEC moves being made on behalf of crypto businesses, after the agency issued the first "taxonomy" earlier this year to clearly lay out how digital assets should be defined and treated for regulatory and jurisdictional purposes. The agency is additionally working on an approach to foster tokenized securities.
"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," Atkins said in a statement on Tuesday, mentioning his agency's crypto agenda before any other specific rulemaking effort.
As the process to advance a crypto market structure bill has languished in Congress, the SEC has been a bright spot for the industry's regulatory hopes, though the agency has sometimes moved more slowly to issue policies than expected. When Atkins addressed this coming regulation almost four months ago in mid-March, he said it would be proposed in the "coming weeks."
The busy new SEC agenda has "Regulation Crypto" slated for July, though it's still under review at the White House Office of Information and Regulatory Affairs. When proposed, it would mark the first major crypto-specific rulemaking pursued under Atkins' leadership. Though the regulator has established a wide range of staff statements and guidance on crypto, those positions don't carry the weight of a full rule, which can't be changed as easily when future leaders arrive at the agency with different ideas.
The SEC agenda also includes other consequential crypto rules, including ones governing asset custody and crypto market structure.
