Crypto companies want clearer SEC rules for token classification, airdrops and secondary trading. Their responses address a proposed U.S. digital-asset framework that could include limited exemptions and a conditional safe harbor. The proposals have not yet been adopted.
The SEC has not adopted the proposed rules
The proposal at issue is Regulation Crypto Assets, SEC file S7-2026-27, issued August 18, 2026. It would provide two tailored offering exemptions: up to $5 million over four years and up to $75 million in a 12-month period, subject to conditions and investor disclosures. The draft also describes a conditional safe harbor linked to when an asset is no longer subject to an investment contract.
Public comments were due October 20. The SEC’s public comment register lists submissions from industry groups, including Bitwise Asset Management. Their requested changes to airdrop treatment, token status and secondary trading are proposals to the Commission, not new legal exemptions available to projects today.
The SEC is still considering the proposal. Industry submissions are recommendations, not adopted policy; the commission may revise, adopt or withdraw the draft after reviewing comments. Companies should not treat a proposed exemption or safe harbor as available before final rules and any applicable conditions take effect.
Why the token’s legal status matters
Token classification can affect disclosure duties, product eligibility and compliance. The legal analysis may depend on the rights attached to a token, how it is marketed, promises made to purchasers and the role of project operators. Airdrops and secondary-market activity can raise questions distinct from an initial sale.
What firms should watch
Businesses should continue following existing law and monitor the SEC’s rulemaking process. The commission has also proposed a separate crypto custody framework, which addresses different obligations.
Primary source
SEC Regulation Crypto Assets proposal, file S7-2026-27; official public comments register. The separate SEC custody proposal is file S7-2026-35.
Related Reading
For related SEC developments, see the agency’s Fiscal 2027 examination priorities on tokenization and our coverage of the proposed crypto custody framework.
This report covers a proposed regulatory framework and is not legal or investment advice.
