The Securities and Exchange Commission published "Regulation Crypto Assets" on August 18, 2026, a 401-page proposal described as the first dedicated securities framework designed specifically for crypto asset investment contracts. It introduces new offering exemptions, registration pathways and a safe harbor that could allow sufficiently decentralized projects to exit securities classification. The proposal covers "covered investment contracts," a category addressing ways crypto projects raise money from investors. A startup exemption would permit early-stage projects to raise up to $5 million over four years, while a broader fundraising exemption would allow annual raises of up to $75 million subject to financial statements and reporting requirements. The safe harbor addresses the so-called "Hotel California" problem, under which a project could enter securities regulation but remain subject to it even after becoming sufficiently decentralized. Public comments are open through approximately October 20, 2026. Key issues include the disclosure requirements and the metrics used to determine decentralization. The proposal follows a March 2026 SEC interpretation on existing securities laws and certain crypto assets, while the 2025 GENIUS Act reflects a broader push for clearer digital-asset rules. It would also give smaller projects a route to bootstrap without full registration, while larger projects using the $75 million exemption would need stronger financial-reporting infrastructure.