SEC proposes sweeping crypto and blockchain regulations

The SEC proposes new crypto regulations, including legal frameworks for token creation and updated transfer agent rules to support blockchain and tokenized securities.

The U.S. Securities and Exchange Commission (SEC) has introduced a set of proposals to modernize regulations for the crypto and securities sectors. The draft Regulation Crypto Assets outlines a comprehensive framework for the legal creation of new crypto assets. It includes two fundraising exemptions and a safe harbor provision, allowing certain tokens to transition out of securities oversight. In a separate move, the SEC has proposed significant updates to transfer agent rules. These changes reflect the growing integration of blockchain technology and tokenized securities into official recordkeeping and settlement processes. The shift from paper-based to digital systems will require firms to report on their use of tokenized securities and blockchain platforms. These proposals aim to reduce legal barriers, encourage real-world asset tokenization, and adapt regulatory practices to the increasing role of blockchain in traditional finance. Public comment periods will take place before final decisions are made.