SEC Proposes Comprehensive Regulatory Framework for Crypto Assets
The U.S. Securities and Exchange Commission introduced new rules for digital asset projects and custody to replace enforcement-led regulation with a formal compliant pathway.
The United States Securities and Exchange Commission has introduced two major regulatory proposals to modernize the oversight of digital assets. On August 18, 2026, the agency published Regulation Crypto Assets, which establishes a framework for digital asset projects. This includes a four-year Startup Exemption for projects raising up to $5 million, a Fundraising Exemption for entities raising up to $75 million, and an Investment Contract Safe Harbor that allows issuers to prove a crypto asset is sufficiently decentralized to exempt it from federal securities laws.
Following this, on October 1, 2026, the SEC proposed new rules specifically for the custody of crypto assets. This framework targets registered investment advisers and companies, allowing for broker-dealer custodial services, self-custody under certain conditions, and the use of state trust companies as custodians. The agency has opened a 60-day public comment period for these custody rules.
These moves signal a shift away from regulation by enforcement for market-structure issues, though the SEC and the United States Department of Justice continue to target fraud. This is highlighted by recent actions against Goliath Ventures Inc. for an alleged $400 million Ponzi scheme. SEC Chairman Paul S. Atkins stated the new custody rules replace the grey of uncertainty created by outdated regulations with a compliant pathway for a multi-trillion-dollar asset class.
