The Securities and Exchange Commission (SEC) is taking steps to clarify the regulatory environment for cryptocurrency fundraising. Chair Paul Atkins has indicated that the commission is close to releasing a new 'reg crypto' framework, which will provide guidelines on how blockchain projects can raise capital and which exemptions may apply.
According to Atkins, the SEC's previous approach focused on enforcement rather than clarity. Under current rules, crypto startups must either register their offerings as security sales or rely on narrow exemptions, such as Regulation D. These limitations have hindered investment in early-stage projects and driven some companies offshore.
The new proposal is expected to address these issues by introducing a tailored registration pathway for token projects and updating the thresholds for what qualifies as a securities offering. This could lead to increased participation from non-accredited investors and more onshore activity in US markets.