Crypto Industry Pushes SEC to Reshape Proposed Regulation Crypto Assets

The US Securities and Exchange Commission faces mounting pressure from digital asset firms and market participants to rewrite its proposed Regulation Crypto Assets framework [1, 2, 3].

Where things stand: Industry feedback submitted ahead of and alongside the SEC's Oct. 20 deadline targets key operational and legal gaps in the draft rules [1, 2, 3]. Blockworks filed a comment letter urging regulators to require line-item disclosures covering token loans, exchange arrangements, and promotional payments to influencers [1]. Asset manager Bitwise and decentralized exchange Hyperliquid pressed the commission to refine standards for token classification, safe harbors, airdrops, and secondary market trading [2]. Separately, wallet backup provider Vault12 warned that the draft token safe harbor exposes secondary exchanges to enforcement actions, advocating for a binding 60-day objection window to establish legal certainty [3].

Why it matters: The proposed rules represent a pivotal attempt by the SEC to formalize disclosure, registration, and trading mechanics across crypto markets [1, 2, 3]. Industry stakeholders argue that without structural safe harbors and explicit secondary market exemptions, the framework could leave trading venues vulnerable to ongoing regulatory enforcement [2, 3].

What comes next: Following the Oct. 20 public comment deadline, the SEC must review submissions as it evaluates whether to amend the framework or proceed toward a final rule [1, 2].