SEC Chair Paul Atkins: U.S. 'Must and Will' Lead Crypto Regulation, Modernize Securities Laws

The U.S. Securities and Exchange Commission on Tuesday unveiled a set of new rules aimed at establishing a clear regulatory framework for investment contracts involving crypto assets.

New Federal Exemptions for Crypto

The proposed rules include two exemptions from registration requirements under the Securities Act of 1933.

The first exemption would allow crypto companies to issue up to $5 million in tokens in a single offering over four years, as well as conduct up to $75 million in offerings per year. Both exemptions require issuers to provide certain "principles-based narrative disclosures" to investors.

In other words, the SEC's proposal would exempt certain crypto companies and token issuances from U.S. securities regulations, potentially making it easier for companies to issue tokens and raise funds.

Once a project completes the key managerial duties promised under the investment contract, the crypto asset itself could qualify for a "safe harbor" and thus no longer be considered a security.

Additionally, offers and sales under these new federal exemptions would not require separate state-level securities registrations.

SEC Chair Calls It 'Most Historic Step'

SEC Chair Paul Atkins said the agency has taken "the most historic step" to modernize federal securities regulations for crypto.

Atkins added: "As the world's crypto capital, the United States must and will lead. Crypto asset regulation will ensure we do just that."

Atkins said the SEC supports Congress's progress on the CLARITY Act and looks forward to the bill becoming law soon.

Through our new proposal, the SEC is taking the most historic step yet to modernize federal securities regulation for crypto assets.

As the world's crypto capital, the United States must and will lead. Crypto asset regulation will ensure we do just that. 🇺🇸

— Paul Atkins, August 18, 2026

Crypto-Friendly Regulatory Regime

Earlier this year, the SEC issued an interpretation clarifying that "most crypto assets" are not securities. The new guidance is a sharp departure from the SEC under Gary Gensler, which treated cryptocurrencies other than Bitcoin as securities.

Notably, a joint regulatory initiative for modernizing digital asset regulation, "Project Crypto," led jointly by the SEC and the CFTC, has been launched.

Meanwhile, CFTC Chair Mike Selig is drumming up support for the inaugural meeting of the "Innovation Advisory Committee" scheduled for Thursday, where the agency will embrace blockchain, AI, and prediction markets by moving away from "regulation by enforcement."

For years, the anti-crypto camp, pessimists, and decelerationists have hindered innovation, regulated through enforcement, and driven transformative technologies such as blockchain, AI, and prediction markets overseas.

On August 20, @CFTC is opening a new chapter, setting direction for...

— Mike Selig, August 18, 2026