SEC Prepares Rule to Let Crypto Startups Raise $75M Without Registering

SEC plans to propose Regulation Crypto this month

The U.S. Securities and Exchange Commission (SEC) plans to propose a rule called Regulation Crypto as soon as July 2026. The agency's updated regulatory agenda, published on 7 July 2026, lists the rulemaking for this month. The rule would create temporary exemptions from registration for developers who launch crypto investment contracts. SEC Chairman Paul Atkins first outlined the framework in March 2026.

"To deliver on President Trump's goal to ensure that the United States is the crypto capital of the world, we are embracing innovation to bring more products onshore, creating clear rules of the road for capital raising with crypto assets, and providing clarity as to how market participants can custody and facilitate trading of tokenized securities onchain.", 7 July 2026. — Paul Atkins, Chairman, U.S. Securities and Exchange Commission

New exemptions would ease crypto startup fundraising

The plan sets two main paths for raising money. A startup exemption would give early-stage projects a regulatory runway of up to four years. During that period, a project could raise up to $5 million while making disclosures to investors. A separate fundraising exemption would let entrepreneurs raise up to $75 million through qualifying crypto investment contracts during any 12-month period. Entrepreneurs would file notices with the Commission when they use the startup exemption and when they exit. They would also publish principles-based disclosures about the contract and the underlying asset, similar to the white papers common in the industry today.

Safe harbor targets projects that shed managerial control

The proposal would also create a safe harbor for issuers that step back from active control of a crypto security. It would apply once an issuer has completed or permanently ended its essential managerial efforts. That step would free the asset from securities-law treatment. Atkins has said project teams must disclose their promises clearly, so investors understand the rights they buy. Both exemptions would sit alongside existing ways to raise capital under federal securities law.

Rule follows the SEC's new crypto asset taxonomy

The proposal builds on a token taxonomy the SEC set out in March 2026. That interpretation defined four categories of crypto assets that are not deemed securities: digital commodities, digital collectibles, digital tools, and payment stablecoins under the GENIUS Act. Only tokenized traditional securities remain subject to the securities laws. Atkins has said the approach traces back to a Token Safe Harbor idea proposed by Commissioner Hester Peirce in 2020.

Bitcoin price at the time of publication

Bitcoin (BTC) traded at $62,715 at the time of publication, up 6.3% over the past seven days (CoinPaprika, 8 July 2026). Its market value stood near $1.26 trillion on the same date. The figures give market context and do not reflect a direct response to the SEC agenda update.

Proposal awaits White House review before public comment

The Regulation Crypto proposal remains under review at the White House Office of Information and Regulatory Affairs (OIRA). The SEC plans to publish it for public comment once that review ends. The agency is also developing separate rules on crypto asset custody and market structure. Atkins has said only Congress can make the framework durable through market structure legislation such as the CLARITY Act.

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