SEC to Consider Crypto Fundraising Exemption

A formal rule is harder to unwind than the stream of staff statements the SEC has issued this year. Those clarified the agency's stance on staking, airdrops, and mining without binding it long term. A completed Reg Crypto would sit on the books past any single chair's term. Legislation, if passed, would be even more durable, which is why industry leaders want the Clarity Act passed in September.

The proposed framework would let developers raise capital for a project without triggering registration, as long as they stay hands-off afterward. The release is expected to offer a path out of SEC jurisdiction once founders are no longer engaged in active management.

The agency is also working on a joint taxonomy with the CFTC to sort which assets fall under which regulator. The Clarity Act still has a narrow chance for action next month. On Myriad, a prediction market built by Decrypt's parent company Dastan, traders place only 22% odds that the Clarity Act passes this year.

The proposal lands as Atkins pushes an innovation-exemption strategy and a long-promised safe harbor for startups, the crypto regulation staff has been prepping since spring.

The meeting is an open session on Aug. 14 at 10 a.m. ET. For broader context on how regulatory shifts affect digital asset markets, see our crypto market analysis.