SEC's 'Regulation Crypto' Proposal Could Reshape Token Issuance

The SEC's agenda also includes rules on asset custody and crypto market structure. The "Regulation Crypto" proposal is slated for July but remains under review at the White House Office of Information and Regulatory Affairs. Atkins first mentioned the rule in mid-March, saying it would be proposed in the "coming weeks."

Stablecoin market cap fell to $312 billion in June, its largest monthly drop since the TerraUSD collapse, according to industry data. Tokenized equity volumes surged 145% to a record $3.86 billion over the same period. The rule could accelerate that trend by reducing regulatory uncertainty for tokenized securities.

Crypto startups currently face a choice between registering as securities issuers or operating in a legal gray area. The proposed exemptions would lower the cost of raising capital through token sales, potentially drawing more projects onshore. The safe harbor provision would protect issuers that later reduce their role in managing the token, a common structure in decentralized projects.

Critics argue the exemptions could weaken investor protections. The SEC has not released the full text of the proposal. The OIRA review process could delay the timeline or force changes before the rule is published for public comment.