The SEC’s official comment window for its Regulation Crypto Assets proposal closed on October 20, 2026. According to a post on X, the agency will keep accepting comments anyway.
Deadline passed, door still open
Per the post, the SEC will continue taking feedback on the proposal after the cutoff. That distinction matters, because research into the rulemaking file indicates the SEC confirmed there was no formal extension to the comment period.
The proposal sits under File No. S7-2026-27. By the October 20 close, it had drawn approximately 140 submissions from industry groups, firms and individual members of the public.
The commenter list includes the Hyperliquid Policy Center, the Alternative Investment Management Association (AIMA), the Securities Industry and Financial Markets Association (SIFMA), and SkyBridge Capital’s Anthony Scaramucci.
Commenters including the Hyperliquid Policy Center and SIFMA flagged areas they want revised. The two biggest pressure points are how the rule treats airdrops and how far the proposed safe harbor reaches.
Airdrops are free token distributions, typically sent to a project’s users or community. Under securities law, giving something away for free can still raise thorny questions about whether an investment contract exists.
What Reg Crypto would actually do
The SEC first announced the proposal on August 18, 2026. Its goal is to build a structured framework for certain investment contracts that involve crypto assets.
The proposal creates two main exemptions under the Securities Act of 1933. The first is a startup exemption that would let crypto offerings raise up to $5 million over four years without going through full registration. The second is a fundraising exemption for larger raises, permitting up to $75 million in a 12-month period, with issuers required to file ongoing reports.
The proposal also includes a conditional safe harbor. It would preempt certain state securities rules for qualifying offerings, meaning issuers would not have to clear a separate regulatory process in each state. Federal antifraud laws would still apply.
The framework is also designed to add legal clarity for secondary trading of crypto securities.
How we got here
Reg Crypto builds on guidance from March 2026, when the SEC and the Commodity Futures Trading Commission (CFTC) issued a joint interpretation of how securities law applies to crypto and related transactions.
SEC Chairman Paul Atkins has framed the proposal as a way to encourage capital formation and technological innovation while keeping investor protections intact.
The CLARITY Act, legislation aimed at crypto market structure, remains stalled, leaving the SEC to pursue through rulemaking what Congress has not yet done through statute.
What this means for issuers and investors
The $5 million startup lane and the $75 million fundraising lane would give projects a growth path, with the larger raise requiring more disclosure.
If the final rule handles airdrops too strictly, a common way projects distribute tokens could become legally fraught. If it handles them too loosely, critics may argue it opens a backdoor around the offering limits.
Without legislation like the CLARITY Act behind it, Reg Crypto would rest on a foundation a future SEC could revisit. Issuers planning multi-year raises under the startup exemption would be building on that foundation.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.