On 7 July 2026, the U.S. Securities and Exchange Commission published its updated regulatory priority agenda, listing Regulation Crypto in the July 2026 slot as the agency's first crypto-specific rulemaking under Chair Paul Atkins. As of mid-July 2026, the approximately 400-page draft was under review at the White House Office of Information and Regulatory Affairs and had not yet been formally published as a notice of proposed rulemaking in the Federal Register. The earliest a final rule could become effective, following the comment period and adoption, is mid-2027.
Regulation Crypto, as described in the SEC's published agenda, would create three main mechanisms. A startup exemption would allow issuers valued under $5 million in their first four years to raise up to $75 million in crypto investment contracts in any rolling 12-month period under a time-limited registration exemption. A decentralisation safe harbor would provide a codified, rule-based standard confirming that tokens are no longer investment contracts once their issuers have permanently ceased all essential managerial efforts and the network operates independently. The proposal would also amend broker-dealer capital, custody, and recordkeeping rules and alternative trading system rules to accommodate digital assets.
Early-stage token project founders, U.S.-based token issuers, and decentralised protocol operators stand to benefit from the proposed exemptions if adopted. Issuers currently relying on SEC staff no-action letters or informal SEC guidance would gain a formal rule-based standard that is harder for a future commission to revoke. Broker-dealers and alternative trading systems handling digital assets face separate implementation obligations under the proposed custody and market-structure amendments.
The CLARITY Act, which would provide statutory authority for some of the same exemptions through legislation, stalled in Congress as of mid-July 2026. The $75 million annual cap and the decentralisation-trigger standard remain subject to change through the formal comment period once the NPRM is published. Whether the SEC will publish the NPRM before July's end depends on completion of OIRA review.
Licentium advises token issuers, decentralised protocol operators, and digital asset businesses on U.S. securities compliance, including assessment of registration exemptions, safe-harbor eligibility, and broker-dealer obligations under evolving SEC rules. Contact us to discuss the effect of Regulation Crypto on your token structure or fundraising plans. Work we undertake includes securities law analysis, token offering structuring, safe-harbor eligibility assessments, SEC exemption strategy, and AML and KYC programme design for digital asset platforms.
Source: CoinDesk, U.S. SEC to Propose Crypto Rule as Soon as This Month, 7 July 2026