The US Securities and Exchange Commission proposed sweeping new crypto regulations on Tuesday, moving ahead independently while Congress remains gridlocked on comprehensive digital-asset legislation.

The proposal, called “Regulation Crypto Assets,” would create two new exemptions from standard securities registration requirements. Startups could raise up to $5 million over a four-year period, while a second, larger exemption would permit issuers to raise as much as $75 million annually, provided they meet ongoing financial reporting and disclosure obligations. Both pathways would still be subject to federal antifraud and antimanipulation rules, and the framework would also pre-empt certain state-level registration requirements.

A notable feature of the plan is a conditional safe harbor allowing tokens to “delink” from their original investment-contract status once issuers have fulfilled or ended the managerial commitments made to investors—potentially shifting oversight toward the Commodity Futures Trading Commission instead.

SEC Chairman Paul Atkins framed the rules as giving crypto entrepreneurs clearer capital-raising pathways, while cautioning that durable, long-term regulation still requires congressional action.

The announcement follows a turbulent stretch for crypto policy. The SEC abruptly canceled a planned vote on the proposal last week amid reports that a Wall Street trade group was weighing a legal challenge to the agency’s authority, and amid White House requests to delay action during ongoing negotiations over the Digital Asset Market Clarity Act. That bill, meant to formally delineate SEC and CFTC jurisdiction over digital assets, failed to advance in the Senate before the August recess, with ethics concerns—including scrutiny of President Trump’s crypto-related earnings—complicating talks.

Separately, the Treasury Department has proposed rules implementing stablecoin licensing requirements under the GENIUS Act, set to take effect in phases starting in 2027. Public comments on the SEC’s proposal will remain open for 60 days following its publication in the Federal Register.

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Source: https://finance.yahoo.com/markets/crypto/articles/us-sec-proposes-rules-crypto-184849907.html