The SEC proposed Regulation Crypto Assets (Reg CA) on August 18, a regulatory framework allowing crypto projects to raise capital through token sales without full registration with the regulator. The framework offers two exemptions: a startup exemption permitting raises of up to $5 million over four years, and a fundraising exemption authorizing up to $75 million within any 12-month period. A key provision includes a conditional safe harbor allowing certain crypto assets to be reclassified as non-securities once the original issuer’s managerial efforts are completed or discontinued. This proposal marks a major shift from the enforcement-focused approach that followed the 2017 ICO boom, with a public comment period running through October 20, 2026.
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