SEC's Regulation Crypto Assets: Comments Close October 20 on the First Permanent US Crypto Rule
The SEC proposal closes for comment on October 20, 2026. What the $5M and $75M token-offering exemptions and the safe harbor would change for crypto.
The US Securities and Exchange Commission's proposed "Regulation Crypto Assets" closes for public comment on October 20, 2026. The package would create two tailored exemptions for token offerings and a safe harbor defining when a crypto asset stops being tied to an investment contract. It is the agency's first attempt at a permanent crypto rulebook.
What the SEC proposed
The Commission unveiled the proposal on August 18, 2026, and published it in the Federal Register on August 21 (File No. S7-2026-27), starting a 60-day comment period. It follows the SEC's March 2026 interpretation of how federal securities laws apply to certain crypto assets.
The proposal has three core pieces:
| Element | What it does |
|---|---|
| Start-up exemption | One-time offerings of up to $5 million over a four-year period |
| Growth exemption | Offerings of up to $75 million in each 12-month period |
| Safe harbor | A crypto asset meeting set conditions would be deemed no longer subject to an investment contract |
The rules would also preempt state registration requirements for offerings made under these exemptions and for certain secondary-market trades.
Why it matters for markets
For years, US crypto projects have faced a single, costly question: when is a token a security? The case-by-case approach led many issuers to launch offshore. A clear exemption with defined caps could bring some of that activity back onshore and give exchanges more confidence to list US-issued tokens.
The timing matters too. On September 15, the Senate failed to advance the CLARITY Act, the market-structure bill that would have split oversight between the SEC and the CFTC. With Congress stalled until after the November 3 midterm elections, agency rulemaking is now the main path to regulatory clarity. Read our analysis of what comes next for the CLARITY Act, and our earlier coverage of the White House talks on the bill.
What it does not do
- It is a proposal, not law: the exemptions and safe harbor are not available yet.
- It does not declare that crypto assets fall outside securities law in general.
- The SEC can revise, narrow or drop parts of the framework after reviewing comments, a process that usually takes several months.
What to watch next
- October 20, 2026: comment period closes. Expect letters from exchanges, DeFi developers, trade groups and investor advocates.
- Following months: SEC staff review and a possible revised or final rule.
- November 3, 2026: US midterm elections, which will shape whether Congress returns to market-structure legislation in 2027.
New to the regulatory landscape? Start with our guide What Is a Stablecoin?, which covers the GENIUS Act, and see how regulation sits alongside macro in How Fed Interest Rates Affect Bitcoin.
Related reading: CFTC crypto rules: the new crypto asset market framework · Why Polymarket is blocked in France · FTX's fifth creditor distribution
Sources: Journal of Accountancy, Aug. 2026 · WICPA summary of the SEC release · CryptoRank, Federal Register comment clock · SEC.gov rulemaking
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