SEC Prepares 'Reg Crypto' Framework for US Crypto Startups

The US is taking steps to become one of the most crypto-friendly markets in the world. The SEC (Securities and Exchange Commission) is reportedly preparing a new framework that would make it easier for crypto startups to raise capital. This proposed 'Reg Crypto' rule could allow eligible projects to raise up to $75 million under streamlined rules, while benefiting from a defined regulatory framework during development.

The CLARITY Act, another key piece of legislation, is still waiting on Senate action and has seen its odds of passing decrease from 70% in May to 44% today. The market is closely following every update as investors watch for signs that clearer regulations could boost confidence across the crypto industry.

Regulators are trying to provide a clear path forward for developers, fundraisers, and issuers, but some critics argue that this might not be enough. As one report notes, 'regulatory pressure mounts, market makers quietly pull their capital to avoid legal risk, causing liquidity to dry up instantly.'