Grayscale: SEC's Reg Crypto Could Boost Ethereum, Solana

Grayscale Head of Research Zach Pandl said the SEC's proposed token fundraising rules could drive more activity on Ethereum and Solana, with BNB Chain also a potential beneficiary. The Aug. 19 analysis ties the Regulation Crypto Assets proposal to a broader shift in U.S. crypto policy.

“The SEC has proposed Reg Crypto, a set of rules that would facilitate token-based fundraising,” Pandl wrote. “This blockchain use case has been hindered by regulatory ambiguity, but the new guidelines could help unlock and drive value to the underlying networks, such as Ethereum, Solana, and BNB Chain.”

How the Proposal Works

The Securities and Exchange Commission unveiled the proposal on Aug. 18. It creates two tailored exemptions for issuing crypto assets used to finance blockchain projects. One path lets eligible issuers raise up to $5 million over four years. A second permits offerings of up to $75 million each 12-month period, with expanded disclosure and reporting requirements. Both routes remain subject to federal antifraud and antimanipulation provisions.

Eligible issuers must provide narrative disclosures. Companies using the larger exemption must also submit financial statements and ongoing reports. The proposal builds on the SEC's March interpretation of when a crypto asset can cease to be part of an investment contract, falling outside securities requirements.

SEC officials have said tailored exemptions reduce incentives for developers and token issuers to operate outside the United States. The SEC and CFTC are coordinating oversight to clarify jurisdictional boundaries for platforms active in both securities and derivatives markets.