The U.S. Securities and Exchange Commission’s proposed “Reg Crypto” framework could revive token-based fundraising in the United States and drive more activity to Ethereum, Solana, and BNB Chain, according to crypto investment firm Grayscale.
In a blog post published Aug. 19, Grayscale said the SEC formally introduced the proposal on Aug. 18, following its March 2026 interpretation of how federal securities laws apply to crypto assets and transactions. The proposed rules would exempt crypto investment contracts from securities-law registration requirements, potentially allowing projects to raise token-based funding directly in the U.S. — a path that has been largely restricted in recent years.
The SEC’s plan focuses on newly minted tokens used for fundraising, rather than tokenized shares of existing stocks or other securities. Grayscale drew parallels to the 2017–18 initial coin offering boom and later initial exchange offerings and decentralized exchange offerings, which increasingly moved offshore as U.S. regulatory uncertainty grew. Grayscale Head of Research Zach Pandl said Reg Crypto “offered eligible issuers a clearer route into the market and mitigated the advantage of structuring token offers abroad.”
Under the proposal, eligible issuers could pursue two potential fundraising paths. One option may accommodate lower amounts of early-stage capital, while a broader open-ended exemption would allow qualified issuers to raise up to $75 million within a 12-month period, subject to disclosure and eligibility requirements. The framework is still in the rulemaking process, and its final requirements could change before adoption.
Grayscale argued that if token issuance accelerates, the benefits would extend beyond individual issuers. More token launches could lead to more users, transactions, liquidity, and application usage across public blockchains. The firm identified Ethereum, Solana, and BNB Chain as networks well-positioned to benefit from a new wave of U.S. token fundraising.
Since 2019, the SEC has generally treated many crypto tokens as securities, a stance that slowed U.S. token launches and pushed many projects offshore. If finalized, the proposal could mark a turning point by offering clearer regulatory guidelines for token-based capital formation. However, the SEC has opened a public comment period, and legal experts caution the framework may still face pushback from lawmakers and consumer protection groups before any final adoption.
