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The U.S. Securities and Exchange Commission (SEC) has proposed Regulation Crypto Assets, or “Reg Crypto,” a framework that could give crypto projects a clearer path to raise capital through newly issued tokens in the United States.
Grayscale Research says the proposal could reopen U.S. token-based fundraising and potentially increase activity across major blockchain networks including Ethereum, Solana and BNB Chain.
SEC Proposes New Paths for Token Fundraising
Reg Crypto would create two proposed exemptions for eligible crypto projects.
The first would allow startups to raise up to $5 million over four years with lighter disclosure requirements. A broader exemption would allow qualifying issuers to raise as much as $75 million within 12 months, subject to additional disclosures and reporting requirements.
The framework is aimed at newly issued crypto assets used for capital formation rather than tokenized versions of existing stocks or other securities.
That distinction could be important for the U.S. crypto industry, where regulatory uncertainty has pushed many token offerings offshore since the ICO boom.
Grayscale Sees Potential Benefits for Ethereum, Solana and BNB chain
According to Grayscale Research, clearer rules could encourage more crypto projects to conduct token offerings in the United States instead of excluding U.S. investors or moving fundraising activities overseas.
Grayscale specifically highlighted Ethereum, Solana and BNB Chain as networks that could benefit if token-based fundraising expands.
The reasoning is straightforward: more token launches could bring additional projects, investors, transactions and economic activity onto public blockchain networks.
However, Grayscale’s assessment remains conditional. The SEC has only proposed the framework, and the final eligibility, disclosure and compliance requirements could determine how widely projects ultimately use it.
Safe Harbor Could Help Decentralized Projects
Reg Crypto also proposes an investment contract safe harbor that could allow qualifying tokens to move outside investment-contract treatment once an issuer has completed or permanently ended the managerial work originally promised to investors.
That could provide a potential regulatory path for projects that begin with significant involvement from a development team but become increasingly decentralized as their networks mature.
The proposal builds on the SEC’s broader efforts to establish clearer rules around crypto assets and investment contracts.
Reg Crypto Arrives as CLARITY Act Faces Uncertainty
The proposal comes while Congress continues debating the CLARITY Act, which would establish a broader federal framework for digital assets and clarify responsibilities between the SEC and Commodity Futures Trading Commission. The legislation still faces disagreements over stablecoin rewards, ethics provisions and its broader market-structure framework, leaving the timing of comprehensive crypto regulation uncertain.
Reg Crypto would not replace comprehensive legislation. Instead, it could address part of the regulatory gap through SEC rulemaking while lawmakers work on broader market-structure legislation.
The proposal is still subject to the SEC’s rulemaking process and public comments, meaning the final framework could differ from the current version.
Still, the potential impact is significant.
If Reg Crypto becomes effective, Grayscale believes it could help bring token-based capital formation back to the U.S., potentially driving new activity toward Ethereum, Solana, BNB Chain and other public blockchain networks.
The proposal therefore represents more than another crypto regulation debate. It could determine whether the United States once again becomes aockchain-based tokens
Source: www.altcoinbuzz.io