SEC’s ‘Regulation Crypto’ Could Ease Startup Fundraising Rules

 

By Giuseppe Ciccomascolo // July 8, 2026 @ 12:41 PM Make AlphaWire Logo preferred on Google News
SEC’s ‘Regulation Crypto’ Could Ease Startup Fundraising Rules

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Point of Focus

  • The SEC is expected to propose “Regulation Crypto” as early as July.
  • The proposal would ease fundraising for crypto startups by allowing limited capital raises.
  • Developers behind crypto investment contracts may get registration exemptions.

 

The US Securities and Exchange Commission (SEC) is preparing to introduce what could become its most significant crypto-focused rulemaking to date, potentially changing how blockchain startups raise capital and launch new projects in the US.

According to the agency’s updated regulatory agenda, the proposal, known as “Regulation Crypto“, could be released as early as July, pending final review by the White House Office of Information and Regulatory Affairs (OIRA).

The rule would introduce temporary regulatory exemptions for certain crypto activities, ease fundraising requirements for startups, and establish clearer pathways for developers launching blockchain-based investment contracts.

The proposal comes as Congress continues to struggle with comprehensive crypto market structure legislation, leaving the SEC to take a leading role in shaping the industry’s regulatory framework.

 

What is “Regulation Crypto”?

The proposed framework aims to provide greater legal certainty for cryptocurrency businesses during the early stages of development.

Under the draft proposal outlined earlier this year by SEC Chairman Paul Atkins, developers launching crypto investment contracts would qualify for temporary exemptions from securities registration requirements under certain conditions.

 

 

The rule would also allow startups to raise a limited amount of capital without completing the full SEC registration process typically required for securities offerings.

Another key feature is a regulatory safe harbor for projects that gradually decentralize over time. If an issuer reduces or eliminates its managerial role over a blockchain network, it could eventually transition away from securities regulation.

While the proposal has not yet been formally released, it represents one of the first attempts to establish a dedicated regulatory regime specifically designed for crypto assets.

 

SEC pushes for clearer crypto regulation

The proposal marks another step in the SEC’s evolving approach to digital assets under Chairman Paul Atkins.

In April, the agency introduced its first formal crypto taxonomy, outlining how different categories of digital assets should be defined for regulatory and jurisdictional purposes. It is also developing new frameworks for tokenized securities, digital asset custody and broader crypto market structure.

 

 

“To deliver on President Trump’s goal to ensure that the United States is the crypto capital of the world, we are embracing innovation to bring more products onshore,” Atkins said. He added that the SEC aims to create “clear rules of the road for capital raising with crypto assets.”

Unlike previous staff guidance, a formal SEC rule would carry greater legal weight and would be more difficult for future administrations to reverse.

 

Why it matters for crypto startups

For blockchain companies, Regulation Crypto could reduce one of the industry’s biggest challenges: regulatory uncertainty.

Many startups have struggled to determine whether token launches or fundraising fall under securities laws. The proposed exemptions could reduce compliance costs and provide clearer rules during early-stage network development. 

The proposal also arrives as crypto legislation remains stalled in Congress, increasing the importance of regulatory action from the SEC.

The agency’s agenda indicates that Regulation Crypto is only the first step, with additional proposals covering digital asset custody and crypto market structure expected later this year.

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Giuseppe Ciccomascolo

After graduating with a Master’s in Advanced Journalism at the London School of Journalism Giuseppe worked as an analyst and Senior Reporter. In 2017, he transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies and played a pivotal role in establishing the academy for a cryptocurrency exchange website.

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