October 20 Deadline Set for Public Comments on US Crypto Asset Regulation

The public comment period for the US "Crypto Asset Regulation" proposal closes on October 20. The proposal was published in the Federal Register on August 21 under identifier (S7-2026-27), with a comment period extending 60 days from its publication date.

The proposal grants a startup exemption valued at $5 million over four years, a fundraising exemption of $75 million per 12-month period, as well as a conditional safe harbor for qualifying token offerings.

Clarifications indicate that the comment deadline does not represent an implementation date, and that a final timeline for adopting the regulation has not yet been determined. Previous reports had addressed the proposed framework from the perspective of safe harbor for trading platforms, whereas current developments focus on the comment deadline and the specified monetary thresholds.

This matter concerns startups and issuers in the region seeking markets to issue their tokens, as the proposed exemptions and safe harbor could ease legal restrictions; however, any delay in adoption prolongs regulatory uncertainty.

What Do These Terms Mean?

Safe Harbor: A regulatory status that provides a company protection from enforcement action during a transition period if it complies with specific conditions, rather than applying all rules immediately.

Startup Exemption: An exception allowing a small company to raise or offer funds without full compliance with regulatory restrictions, aimed at encouraging early-stage activity.

Token Offering: The sale of digital units to investors to raise funding for a project, a process subject to disclosure requirements and investor protections.

Public Comment: A period enabling individuals and companies to submit feedback on a draft regulation before its final adoption, based on which rules may be revised.