SEC proposes a rulebook for raising money by selling crypto tokens

Aug. 18, 2026 — The SEC has proposed "Regulation Crypto Assets," its first rules written specifically for projects that raise money by selling crypto tokens. Startups could raise up to $5 million over four years under one exemption; a second would allow up to $20 million, or $75 million a year with audited financial statements. A safe harbor would let a token stop being treated as a security once the project behind it has ended its essential managerial efforts.

The proposal would also override state securities registration for these offerings, leaving states their power to pursue fraud. Chairman Paul Atkins said the rules would give crypto entrepreneurs clear pathways to raise capital under the federal securities laws. In a statement the same day, he said the SEC's earlier approach had undermined capital formation through "regulation by enforcement."

State securities regulators have long opposed federal preemption of their oversight of crypto offerings. One public comment filed on the proposal notes that the SEC's own analysis concedes state review may add a layer of investor protection, yet the rule would remove it. The proposal also does not settle whether platforms trading these tokens must register as exchanges or brokers.

Comments are due Oct. 20.

The wall: No NASAA statement on this proposal was found as of Sept. 30; the comment period runs through Oct. 20.

Tier: Confirmed (key facts read in primary at passage level or better)

Corrections

• Corrected Oct. 2, 2026: adds Chairman Atkins's Aug. 18 statement on the SEC's earlier approach. An earlier edit had removed the phrase until its source was confirmed.

Sources

• SEC press release 2026-76
• SEC rule page, File S7-2026-27 (Federal Register date, comment deadline)
• SEC proposing release 33-11434
• Cahill (exemption tiers)
• Stinson (antifraud retained; platforms)
• Public comment, File S7-2026-27
• Gesmer (NASAA position history)
• SEC, Chairman Paul S. Atkins, Statement on Regulation Crypto Assets, Aug. 18, 2026

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