The SEC published « Regulation Crypto Assets » on August 18, 2026, a 401-page proposal creating the first dedicated securities framework specifically designed for crypto asset investment contracts. The rule introduces a startup exemption allowing raises of up to $5 million over four years, a fundraising exemption for up to $75 million annually, and a safe harbor provision for sufficiently decentralized projects. The proposal aims to solve the « Hotel California » problem where a project could fall under securities law but never exit, even after becoming decentralized. Public comments are open until approximately October 20, 2026.
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