WASHINGTON

The U.S. Securities and Exchange Commission proposed Regulation Crypto Assets on Aug. 18, introducing the first major regulatory framework under President Donald Trump's administration to establish tailored rules for digital asset issuance.

The proposal creates two exemption pathways for token offerings. Companies can issue up to $5 million in tokens over a four-year period under a one-time exemption, or up to $75 million during each 12-month period under a separate tier. Both pathways require issuers to disclose specific information to investors. The $75 million annual tier mandates financial statements and regular reporting.

A safe harbor provision excludes crypto assets from being deemed investment contracts if certain conditions are met—addressing a central point of friction between the SEC and the industry over token classification.

SEC Chair Paul Atkins, appointed by Trump, said the agency "seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws." Atkins has maintained that many crypto tokens function more as commodities than securities.

The proposal reflects a broader shift in the SEC's stance. Under Republican leadership, the agency last year rescinded strict crypto accounting guidance and dismissed lawsuits against Coinbase and Binance over alleged securities violations.

Industry groups have welcomed the step. Summer Mersinger, CEO of the Blockchain Association, called Regulation Crypto Assets "an important step toward the clear, fit-for-purpose rules digital asset markets in the United States have needed for years." Cody Carbone, CEO of The Digital Chamber, said his group would "work with the SEC to ensure consumers and the digital assets industry can thrive onshore in the U.S."

Some executives have flagged vulnerability: without legislative backing, the rules could be reversed or tightened by future administrations. The crypto industry has spent hundreds of millions of dollars campaigning for statutory legislation, efforts currently stalled in the Senate.

The proposal enters a 60-day public comment period following its publication in the Federal Register.