--- title: "Blockworks Urges SEC to Mandate Market-Maker and Promoter Disclosures for Token Offerings" description: "A comment letter on proposed Regulation Crypto Assets calls for line-item disclosures on token loans, exchange deals, and influencer payments ahead of the agency's Oct. 20 deadline." url: https://basisdesk.news/news/blockworks-sec-token-disclosure-rules-comment-letter published: 2026-10-19T16:26:49.313Z modified: 2026-10-19T16:26:49.313Z section: Regulation & Policy author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: neutral tickers: [] tags: [sec, regulation-crypto-assets, blockworks, token-offerings, disclosures, market-makers] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # Blockworks Urges SEC to Mandate Market-Maker and Promoter Disclosures for Token Offerings A comment letter on proposed Regulation Crypto Assets calls for line-item disclosures on token loans, exchange deals, and influencer payments ahead of the agency's Oct. 20 deadline. ## At a glance - **What happened:** Blockworks submitted a comment letter urging the SEC to mandate line-item disclosures on market makers, token loans, and promoter payments under proposed Regulation Crypto Assets. - **Why it matters:** If adopted, token issuers would face standardized, audited onchain reporting requirements to raise public capital under SEC exemptions. - **Who is affected:** Token issuers, crypto market makers, digital asset exchanges, and advisers receiving token-based compensation. - **Takes effect:** 2026-10-20 - **What's next:** Public comments on SEC File No. S7-2026-27 close on Oct. 20, 2026, ahead of agency review and potential final rulemaking. - **Status:** consultation - **Primary source:** [Blockworks Asks SEC to Make Token Projects Disclose Market-Maker Deals and Promoter Payments](https://unchainedcrypto.com/blockworks-asks-sec-to-make-token-projects-disclose-market-maker-deals-and-promoter-payments/) — unchainedcrypto.com ## Key points - Blockworks filed a comment letter on the SEC's proposed Regulation Crypto Assets demanding specific token-offering disclosure line items. - The requested rules would require projects to detail token loans, exchange agreements, market-maker deals, and tokens paid to promoters or advisers. - The letter proposes SEC-recognized Qualified Onchain Disclosure Agents and third-party filings for non-reporting or abandoned token projects. ## Editorial remark - **Context:** The SEC introduced Regulation Crypto Assets in August 2026 under File No. S7-2026-27 after comprehensive digital asset legislation, the Clarity Act, stalled in the Senate. - **Impact:** Token projects seeking exemptions to raise up to $75 million annually would face granular reporting mandates regarding liquidity deals and insider allocations. - **Watch:** The public comment period for Regulation Crypto Assets closes on Oct. 20, 2026, initiating SEC staff review ahead of final rule drafting. Crypto data and media firm Blockworks announced on Oct. 19, 2026, that it is submitting a formal comment letter urging the US Securities and Exchange Commission to mandate explicit disclosure requirements for token issuers under proposed Regulation Crypto Assets [1]. Under the changes requested by the firm, token projects raising capital would be required to detail their market-maker agreements, exchange deals, token loans, and compensation paid in tokens to advisers and influencers [1]. The recommendations draw directly from the Token Transparency Framework developed by Blockworks in conjunction with its Transparency Alliance, a consortium whose member list includes Coinbase, Kraken, Binance.US, and ARK Invest [1]. While the SEC's draft Rule 103 outlines broad categories such as token supply, lockups, and distributions, it currently lacks prescriptive line items [1]. Blockworks' proposal asks the regulator to require projects to disclose critical smart-contract and wallet addresses, alongside specific methodologies for calculating circulating supply [1]. ## Third-Party Filing Agents Beyond issuer reporting, the comment letter proposes the creation of a "Qualified Onchain Disclosure Agent," an SEC-recognized intermediary that would extract verifiable onchain data directly from project wallets and contracts before an issuer confirms and signs off on the submission [1]. These agents would maintain public, version-controlled records of all filings [1]. Blockworks also asked the commission to allow crypto exchanges or third parties to draft filings for inactive projects or tokens whose original issuers never registered disclosures, departing from the draft framework's sole reliance on issuer-submitted reports [1]. Blockworks maintains issuer software tools such as RapidFile and the Issuer Console, though its briefing did not indicate whether the company itself plans to seek regulatory approval as an onchain disclosure agent [1]. Proposed Regulation Crypto Assets would enable token startups to raise up to $5 million across a four-year horizon, or as much as $75 million within a 12-month period [1]. SEC and Commodity Futures Trading Commission leaders initiated rulemaking under existing authorities after the federal Clarity Act stalled in the Senate [1]. Public comments on the regulatory package, filed under SEC File No. S7-2026-27, close on Oct. 20, after which the regulator will review submissions before drafting a final rule [1]. ## FAQ **What is SEC Regulation Crypto Assets?** It is a proposed SEC framework enabling token startups to raise up to $5 million over four years or up to $75 million in a 12-month period under conditional registration exemptions. **What disclosures did Blockworks request from the SEC?** Blockworks requested line-item disclosures for token loans, exchange and market-maker deals, payments to advisers and influencers, smart-contract addresses, and token supply methodologies. **What is a Qualified Onchain Disclosure Agent?** A proposed independent entity that would pull verified data directly from an issuer's wallets and contracts to maintain a standardized, version-controlled public disclosure archive. ## Sources 1. [Blockworks Asks SEC to Make Token Projects Disclose Market-Maker Deals and Promoter Payments](https://unchainedcrypto.com/blockworks-asks-sec-to-make-token-projects-disclose-market-maker-deals-and-promoter-payments/) — unchainedcrypto.com, 2026-10-19 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai