The U.S. Securities and Exchange Commission (SEC) is scheduled to hold a public meeting on August 14 to discuss whether to propose new rules targeting crypto projects. Based on the current direction disclosed, certain digital asset projects may be able to raise funds without completing a full securities registration, provided they meet specific conditions.
Discuss the formal proposal on August 14.
The SEC’s August 10 meeting notice indicates that the Commission will consider a proposed rulemaking to establish a tailored framework for certain digital asset offerings. If it proceeds to public comment, this would mark the SEC’s first formal rulemaking process addressing crypto assets, rather than relying solely on staff guidance or interpretive statements.
This year, the SEC has issued multiple positions on issues such as staking, airdrops, and mining, but most of these lack long-term binding force. In contrast, once formal rules are finalized, they will have greater stability and will not be easily withdrawn due to changes in the chairperson’s term.
Financing is exempt.
According to framework details disclosed by foreign media, the SEC is considering allowing development teams to avoid triggering full securities registration requirements during early-stage project financing, provided that the project team does not continue to exercise active managerial control over the project after financing.
The core of this design is to provide projects with a compliant transition period. SEC Chairman Paul Atkins previously proposed the concept of a "regulatory framework for crypto assets," advocating for an exemption mechanism in place of pure enforcement, and mentioned in March a potential exemption arrangement for startup projects, possibly lasting up to four years, to give developers time to move their projects toward decentralization.
Proceed ahead despite legislative delays
However, the SEC has not yet disclosed key details such as the funding threshold in its meeting notice. If the final text is proposed, it will still require public comment and further refinement, and will not be implemented as a final rule in the short term.
The context for this rule discussion is that the U.S. Senate failed to advance the Digital Asset Market Clarity Act before adjourning in August. The bill was originally seen as a crucial step toward establishing a legal foundation for the U.S. cryptocurrency market structure.
In the absence of progress in congressional legislation, the SEC’s rulemaking is seen as one way regulators are moving forward to establish clarity. TD Cowen analyst Jaret Seiberg said this may just be the beginning of a series of SEC rulemaking efforts in the crypto space.
Additional information: The report notes that the SEC is also collaborating with the U.S. Commodity Futures Trading Commission (CFTC) to coordinate the classification of digital assets and clarify regulatory jurisdiction over different assets.