SEC Closes Comment Period on Crypto Rule Proposal After About 140 Submissions

The U.S. Securities and Exchange Commission has closed the public comment period on its proposed crypto-asset rules, drawing both support and concern from market participants.

Cointelegraph reported on October 19 that the SEC was concluding the comment process that day for its "Regulation Crypto Assets" proposal. The proposal, released in August, drew about 140 comments over roughly 60 days from industry groups and individuals.

The proposal is aimed at clarifying the legal standards for investment contracts tied to crypto assets. Key provisions include a safe-harbor clause offering regulatory relief to token issuers that meet certain conditions, as well as an exemption from regulation for token offerings below a certain size.

Some in the industry welcomed the SEC's effort to refine the regulatory framework. The MiCA Crypto Alliance, which supports implementation of the European Union's Markets in Crypto-Assets regulation, backed the direction of the disclosure-rule overhaul while urging the SEC to more clearly define crypto-specific concepts, data structures and disclosure requirements.

SkyBridge Capital founder Anthony Scaramucci also backed the proposal, calling it a reflection of the crypto market's organic growth and a step that keeps the SEC aligned with its core oversight role.

Some legal experts, however, flagged the limits of relying on administrative rules rather than legislation passed by Congress. SEC rules are more susceptible than statutes to future revision or repeal as policy priorities shift. With congressional action on the CLARITY Act, a bill intended to govern crypto market structure, still delayed, the challenge of securing long-term regulatory stability remains unresolved.