Coverage
- 8.5
SEC Proposes Token Offering Rules With $75 Million Exemption
The SEC proposed new rules for token offerings, pairing two registration exemptions with a conditional safe harbor and a $75 million exemption. All three sitting commissioners voted in favor during a vote held outside a public meeting. This is a landmark regulatory development that could materially reshape how crypto projects raise capital in the U.S. and how tokens are classified. If finalized, it would provide clearer legal pathways and reduce the risk that tokens are treated as securities. The proposal pairs two registration exemptions with a conditional safe harbor that would remove the "investment contract" label from a token, and it preempts state securities laws. Unanimous support from all three sitting commissioners signals strong momentum, but the rule remains a proposal rather than a final SEC action.
- 9.0
SEC Proposes 'Regulation Crypto Assets' Framework
The SEC today proposed 'Regulation Crypto Assets,' a new rules package designed to create a clear and fit-for-purpose framework for certain investment contracts involving crypto assets. This is the first comprehensive SEC rulemaking tailored specifically to crypto asset offerings and secondary trading. If adopted, the framework could significantly reshape how crypto assets are classified, offered, and traded in the U.S., affecting exchanges, issuers, and investors. It marks a paradigm shift from enforcement-driven oversight toward a comprehensive regulatory regime for crypto. The proposal specifically targets 'investment contracts' involving crypto assets, a legal concept tied to the Howey test used to determine whether an asset is a security. As a proposed rule, it has not yet been adopted and will go through a public comment period, with details subject to potential revisions.
- 8.0
SEC lets Franklin Templeton funds invest in its onchain money fund
The SEC issued a no-action letter stating it will not pursue enforcement action if Franklin Templeton funds invest cash in the Franklin OnChain U.S. Government Money Fund (BENJI). The relief also allows affiliated transfer agent FTIS to act as custodian and hold private keys without adhering to existing physical-custody rules. This is a major regulatory milestone: the SEC explicitly permits a large asset manager to invest in its own tokenized money market fund and grants custody relief for digital assets. It advances institutional adoption of onchain funds and sets a precedent for adapting traditional fund rules to blockchain-based recordkeeping. The SEC's letter outlines 12 conditions, including systems to prevent unauthorized instructions and administrative controls for FTIS to correct, freeze, migrate, or restore records. Franklin Templeton manages $2.5 billion in onchain assets and is the fifth-largest tokenized asset manager, according to RWA.xyz.
- 8.0
SEC Targets Regulatory Framework for Tokenized Stocks
The SEC plans to propose 'Regulation Crypto' and an innovation exemption for tokenized stocks, potentially allowing tokens tracking stocks like Apple and Tesla to trade on blockchains around the clock. Details could be unveiled at a Friday open meeting. This would provide legal clarity for the tokenized securities market, which has grown rapidly on platforms like Robinhood Chain, Solana, and Base while operating in a regulatory gray zone. A formal exemption could open U.S. retail access and further legitimize the real-world asset (RWA) trend. The intended exemption applies to tokens that track a stock's economic exposure but carry no voting or dividend rights, justifying lighter regulatory treatment. The CLARITY Act remains stalled in Congress until at least September, prompting the SEC to act unilaterally under Chair Paul Atkins' 'Project Crypto' agenda.
- 8.0
SEC Advances Tokenized-Securities Exemption for 24/7 Trading
The U.S. Securities and Exchange Commission (SEC) is advancing an exemption framework for tokenized securities that would allow compliant onchain trading, potentially enabling 24/7 markets while long-term rules are developed. A senior SEC official, Atkins, said the framework would support such trading, and Friday's scheduled Commission consideration covers a separate offering proposal. This move could meaningfully reduce regulatory uncertainty for tokenized securities and pave the way for round-the-clock trading of traditional assets on blockchain networks. It marks a notable step by U.S. regulators to accommodate onchain finance within existing securities law, potentially affecting issuers, exchanges, and investors in both traditional and crypto markets. The exemption framework is still a preliminary step and has not been finalized; long-term rules are still being developed. The SEC's scheduled Friday Commission consideration addresses a separate offering proposal, not this exemption framework.
- 8.0
SEC No-Action Letter Lets Franklin Templeton Funds Use Onchain BENJI
The U.S. SEC issued a no-action letter allowing Franklin Templeton's traditional registered funds to invest in its onchain BENJI/FOBXX tokenized money market fund. This is a regulatory first that directly permits conventional fund vehicles to hold a tokenized fund. This marks a significant regulatory milestone for tokenized financial products, signaling growing SEC clarity and acceptance of onchain fund infrastructure. It could accelerate institutional adoption of tokenized money market funds and encourage other traditional asset managers to integrate blockchain-based systems. FOBXX (Franklin OnChain U.S. Government Money Fund) invests primarily in U.S. government securities and relies on the BENJI blockchain system for record-keeping and ownership tracking. The no-action letter specifically permits Franklin's traditional registered funds to purchase shares of the tokenized fund, subject to the conditions outlined in the letter.
- 8.0
SEC Prepares Escape Hatch From Securities Registration for Crypto Projects
The SEC has scheduled an open meeting for August 14 to consider proposing 'Regulation Crypto,' a tailored framework that would allow digital-asset projects to raise capital without full securities registration and provide an exit from SEC oversight once projects decentralize. This would mark the SEC's first durable rule for the crypto industry, offering founders a regulatory runway to raise capital and decentralize without triggering registration. It could reshape how U.S. crypto projects structure fundraising and reduce the threat of enforcement when legislation like the Clarity Act stalls. The proposal, advanced by SEC Chair Paul Atkins, is expected to include a startup exemption that could last up to four years and a safe harbor tied to decentralization, though fundraising thresholds were not disclosed. It would be the first formal rulemaking rather than a staff statement, making it harder for a future chair to unwind, and it comes after the Senate failed to advance the Clarity Act before its August recess.