Key Takeaways:
- Regulatory agencies proposed Reg Crypto for clearer guidelines on token fundraising.
- Grayscale believes there is upside to Ethereum, Solana and BNB Chain.
- Projects that will qualify may benefit from a fresh way of securing financing in the United States.
The new U.S. Securities and Exchange Commission (SEC) crypto rule may revive a fundraising avenue that shifted offshore during the ICO boom years. The framework is the potential driver for more token issuance and blockchain activity in the U.S., said Grayscale.
SEC Targets a Long-Standing Crypto Fundraising Gap
The SEC proposed Regulation Crypto Assets, or “Reg Crypto,” on August 18, following its March 2026 interpretation of how federal securities laws apply to crypto assets and transactions.
The proposal emphasizes newly minted tokens for fundraising, not tokenized shares of an existing stock or other securities. The difference here matters, because token financing has been around for a number of years, but given the regulatory uncertainty, many U.S. issuers have struggled to launch a token fundraising offering on their home domain.
According to nodes, the 2017–18 ICO cycle illustrated the extent of the demand for tokens from investors. Newer offers, such as initial exchange offerings and decentralized exchange offerings, began to trend increasingly off-shore from the U.S. as projects looked elsewhere for more favorable regulations.
Reg Crypto offered eligible issues a clearer route into the market and mitigated the advantage of structuring token offers abroad, said Grayscale Head of Research Zach Pandl.
Read More: SEC Eyes Tokenized Stocks Plan That Could Unlock Trillions in Crypto Trading Markets
Two Potential Fundraising Paths
The proposed framework provides exemptions which may permit projects with specific disclosure and eligibility requirements to attract capital. One option might allow for lower amounts of early-stage fundraising, while a wide open-ended exemption would allow all issuers that are a qualified issuer to raise $75 million in a 12-month period.
These are rules that are suggested, not actual permissions. Issuers will still have to meet the SEC’s conditions, and the framework will have to undergo the rulemaking process before it takes effect.
Ethereum, Solana and BNB Chain Could Capture More Activity
Grayscale claims that if its tokens are successfully funded, they will create activity outside of the issuers.
The more token releases the more users, transactions, liquidity and application use there would be on the public blockchains. The company pointed to Ethereum, Solana and BNB Chain as networks it believes would be well-positioned to improve should U.S. token issuance accelerate.
Another question that’s discussed again in Reg Crypto is what happens when the crypto protocol begins to be automated or decentralized enough. The proposal is based on SEC’s March 2026 guidance, and can offer a path for some qualifying tokens to transition from an investment contract status once the issuer’s promised managerial work is done.
Reg Crypto is not finalized by SEC and the final up to final requirements may evolve on the public rulemaking. Nonetheless, Grayscale sees the act as a possible groundbreaking move for introducing the token-based capital formation to the U.S. cryptocurrency market.
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