U.S. SEC Could Propose New Rule as Soon as This Month to Ease Crypto Startup Fundraising

The U.S. Securities and Exchange Commission is reviewing its approval framework for novel exchange-traded funds, including nontraditional products involving cryptocurrencies, tokenized assets and event contracts. The review centers on whether such funds should qualify for an automatic approval mechanism, with implications for issuers’ listing timelines, compliance costs and investor-protection standards.

The SEC has opened a 60-day public comment period on proposed changes to U.S. rules governing novel ETFs, seeking market participants’ views on an automatic approval system and the conditions under which it should apply. The process does not mean new products will be approved immediately, but it could change the review threshold for ETFs involving cryptocurrencies and other assets. No monetary amounts or date for a final decision have been disclosed.

The US Securities and Exchange Commission has long applied securities laws to crypto token offerings, while the industry has criticized the lack of clarity over when a token constitutes an investment contract and when it can fall outside regulatory oversight. Chair Paul Atkins has therefore proposed “Regulation Crypto Assets,” combining exemptions for startups and fundraising with an investment-contract safe harbor to balance capital formation, disclosure and investor protection.

On March 17, 2026, Atkins proposed allowing startups to raise up to $5 million over a maximum of four years, with a separate exemption permitting offerings of up to $75 million in any 12-month period. The draft was submitted to the White House Office of Information and Regulatory Affairs for review in early April. On May 18, media reports said the SEC could introduce a separate “innovation exemption” as early as that week, allowing tokenized US equities to operate without full broker-dealer or exchange licenses under specified conditions.