For the first time in its history, the SEC is drafting a rule written specifically for crypto. The proposal, officially known as "Regulation Crypto," has been submitted to the White House Office of Information and Regulatory Affairs (OIRA) for review — the last procedural hurdle before it can be formally published for public comment. If cleared on schedule, the rule could land as early as this month.
The core idea: carve out a protected zone from the Securities Act of 1933. Startups valued under $5 million in their first four years of operation would get a temporary exemption from registering as securities issuers. Larger projects could raise up to $75 million through crypto investment contracts without going through standard SEC registration. A third bracket covers protocols that are already stepping back from centralized management — a nod to decentralization as a path to regulatory relief.
Once OIRA signs off, a public comment period follows, then the SEC finalizes the rule. That process takes months. But the formal publication alone will shift the legal landscape. Crypto projects have spent years operating under the threat of surprise enforcement actions. A written rule — even a draft — gives them something concrete to work with.
The contrast with the Gensler era is stark. The previous SEC chair refused to write crypto-specific rules and instead launched dozens of lawsuits. Chair Paul Atkins came in promising the opposite approach: rules first, then accountability. He said the goal is "to ensure that the United States is the crypto capital of the world." If Congress fails to pass the CLARITY Act before summer recess, Regulation Crypto will be the primary legal framework shaping the US market for the foreseeable future.
