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Grayscale Research says the SEC’s proposed Regulation Crypto Assets could revive U.S. token-based fundraising and direct activity toward Ethereum, Solana, and BNB Chain. The August 18 proposal creates two registration exemptions: up to $5 million over four years, or up to $75 million per 12-month period with financial reporting obligations. The framework targets newly issued crypto assets and includes a safe harbor for tokens whose issuers have completed essential managerial work. Grayscale’s Zach Pandl argues that clearer rules could reverse the offshore migration that followed the 2017-2018 ICO boom, when projects raised roughly $12.9 billion. A 60-day public comment period begins after Federal Register publication, and the proposal may partially substitute for the stalled CLARITY Act. Grayscale has already positioned accordingly, making BNB the largest holding in its Smart Contract Fund at 30.6%.
Key Elements
A proposed overhaul of U.S. securities rules for digital tokens could trigger a significant rally in major public blockchain networks, with Ethereum, Solana, and BNB Chain positioned as primary beneficiaries, according to analysis from Grayscale Research.
Zach Pandl, head of research at Grayscale, said the Securities and Exchange Commission’s newly unveiled framework could reset token-based fundraising in the United States, channeling activity toward established networks that already host substantial developer and user ecosystems. The analysis, published this week, frames the regulatory shift as a potential turning point for a market that has spent years navigating legal ambiguity.
The SEC proposed Regulation Crypto Assets on August 18, targeting investment contracts involving newly issued crypto assets. The framework creates two exemptions from standard Securities Act registration requirements for qualifying token offerings. The first, a startup exemption, allows issuers to raise up to $5 million over a four-year period. The second permits eligible issuers to raise as much as $75 million in any 12-month window, provided they meet financial statement requirements and maintain ongoing reporting obligations. Federal antifraud and market-manipulation rules would still apply to offerings made under both exemptions.
The proposal focuses specifically on newly issued crypto assets rather than blockchain representations of existing securities. That distinction separates the regulation from tokenized stocks, which link digital assets with shares already issued elsewhere. Instead, the SEC aims to build a dedicated framework for companies raising capital through crypto-related investment contracts.
Grayscale’s thesis rests on a straightforward mechanism: if U.S. projects can once again sell tokens to American investors under clear rules, entrepreneurs and investors will generate more on-chain activity. The networks where tokens are issued and traded would absorb that demand.
The historical precedent is substantial. Research from the National Bureau of Economic Research found that more than 1,500 projects raised roughly $12.9 billion during the 2017-2018 initial coin offering wave. In the years that followed, regulatory uncertainty pushed much of that activity offshore, with U.S. investors largely excluded from later models such as initial exchange offerings and initial DEX offerings.
Ethereum stands to capture additional network activity because many token projects already use its infrastructure for issuance and settlement. More domestic offerings would likely increase transactions, smart-contract usage, and applications built around the existing ecosystem. Solana could attract new fundraising activity given its high transaction capacity and established role in token launches, payments, and decentralized applications. BNB Chain represents another candidate, hosting applications, digital assets, and decentralized finance services that require frequent blockchain transactions.
Grayscale’s positioning in BNB underscores the conviction. The firm this month adjusted weights in its Smart Contract Fund, making BNB the largest holding at 30.6%.
The SEC proposal also includes a conditional safe harbor addressing when crypto assets cease to be linked to investment contracts. An issuer could qualify after completing or permanently ending the essential managerial work originally promised under the contract. Qualified assets would then fall outside investment-contract treatment under the federal securities definitions covered by the proposal. This distinction was a central point of contention in the SEC’s years-long litigation with Ripple over XRP.
The rulemaking process remains in its early stages. The proposal requires completion of the SEC’s formal procedures before issuers can use the exemptions. A 60-day public comment period will begin following publication in the Federal Register. SEC Commissioner Mark Uyeda said clearer rules could reduce the pressure pushing companies to operate outside the United States.
The proposal may also serve as a partial substitute for provisions of the CLARITY Act, comprehensive digital asset legislation that has struggled to advance in the Senate. While Congress continues work on broader market structure, the SEC’s initiative represents a more immediate regulatory pathway within its existing jurisdiction.
Grayscale’s assessment is not a price prediction but a structural argument: regulatory clarity could restore token-based capital formation as a major use case for public blockchains. If that scenario materializes, Ethereum, Solana, and BNB Chain would likely rank among the primary networks for new token issuance and trading activity.
| Network | Key Advantage | Potential Impact |
|---|---|---|
| Ethereum | Largest developer and application ecosystem | Increased token issuance, smart-contract usage |
| Solana | High transaction capacity, established launch platform | New fundraising activity, payments, dApps |
| BNB Chain | Broad user base, Binance ecosystem integration | Expanded token distribution and DeFi services |
Note: Grayscale’s Smart Contract Fund recently rebalanced to make BNB its largest holding at 30.6%, reflecting the firm’s positioning ahead of potential regulatory changes.
The proposal does not guarantee immediate market movement. Final rules could change in scope or timeline, and the broader digital asset legislative picture remains unresolved. But for the first time in years, token issuers have a visible path toward compliant U.S. fundraising, and the networks that support that activity stand to benefit directly.
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Source: finance.biggo.com