U.S. regulators are moving on two fronts to reshape crypto market oversight. The SEC's proposed Regulation Crypto Assets enters its final public comment stretch ahead of the October 20, 2026 deadline. Published in the Federal Register on August 21, the plan introduces two Securities Act registration exemptions and a conditional safe harbor for token classification. Chairman Paul Atkins has framed the initiative as an effort to encourage cryptocurrency businesses to operate in the United States while maintaining investor protections.
The startup exemption would allow eligible issuers to raise up to $5 million over four years, while a broader fundraising exemption would permit up to $75 million per 12-month period. Larger raises would require financial statements and ongoing reporting. Issuers would still face antifraud and antimanipulation provisions, and certain state securities rules would be preempted. The safe harbor would apply when issuers have completed or permanently ceased essential managerial efforts, potentially helping tokens transition to independently operating networks.
Meanwhile, CFTC Chairman Mike Selig tied new federal safeguards to FTX's $8 billion customer losses. At Fordham Law’s Blockchain Regulatory Symposium on October 5, he argued for futures-style protections in crypto spot trading. The CFTC's advance notice of proposed rulemaking outlines Regulation CTX and Regulation CAM, focusing on leveraged and margined retail trading, segregated customer funds, proof-of-reserves, anti-manipulation controls and futures commission merchant involvement. Selig noted that FTX's CFTC-registered subsidiary protected customer funds because assets were segregated, contrasting with state money-transmitter regimes he says fit PayPal rather than order-book exchanges. The framework would be opt-in for registered exchanges and would exempt certain transactions delivering assets to non-custodial wallets within 28 days.
The SEC's proposal follows its March 2026 digital asset interpretation, designated File No. S7-2026-27, and does not yet have a final adoption timetable. The CFTC plan arrives as Congress continues debating broader market structure legislation, leaving both agencies as key sources of potential regulatory clarity for digital assets.
