The U.S. Securities and Exchange Commission has put forward a new framework for crypto assets that would cover a token's entire securities lifecycle, from the initial capital raise through a defined path for the token to eventually stop being treated as a securities contract.

The proposal is broader than a one-time fundraising exemption. According to the SEC's announcement, the measure is structured as a full framework rather than a narrow safe harbor for token sales, addressing fundraising, disclosure obligations, and an eventual exit from securities-contract status. That scope distinguishes it from prior efforts that focused only on the moment capital is raised; the nearest commission-level precedent is the token safe harbor proposed by Commissioner Hester Peirce in 2019 and revised in 2020, which was never adopted. The framework reportedly includes a fundraising path of up to $75 million for qualifying token projects (Yahoo Finance). That figure matches the cap the SEC already permits for Tier 2 offerings under Regulation A+, its existing channel for smaller issuers to raise up to $75 million in a 12-month period, which gives a familiar benchmark for the scale contemplated. It also contemplates a mechanism through which a token that begins its life as a securities contract could later shed that classification as its network matures.

Status of the rulemaking

The rulemaking has been entered into the record via a Federal Register filing, but it remains a proposal and not final SEC policy. The document would still need to move through the comment and adoption stages before any of its provisions take effect.

The proposal arrives as SEC leadership has signaled a willingness to move on crypto rules directly. The agency's chair has previously said the SEC would issue crypto market rules if the CLARITY Act fails, and has separately noted that the agency could set crypto rules if the legislation stalls. The CLARITY Act named in those remarks passed the House in July 2025 and would divide oversight of digital-asset markets between the SEC and the CFTC, but it has not cleared the Senate, leaving the agency's rulemaking track and the legislative track running in parallel.

Why a lifecycle model matters for token projects and the AI crypto stack

A lifecycle model differs from a one-time exemption because it governs a token continuously as its role changes, rather than clearing only the initial sale and leaving later stages in legal limbo. That limbo has a specific legal root: whether a token offering is an "investment contract" is judged under the Supreme Court's 1946 Howey test, and the SEC has historically applied that standard largely through case-by-case enforcement rather than a published transition mechanism. The structure maps onto how many token networks actually develop: capital formation first, then utility or governance functions once infrastructure is live.

For AI-linked token projects, that sequencing is directly relevant. Networks that fund decentralized compute, inference markets, or on-chain AI governance typically need to raise capital before their utility exists, and a defined path from fundraising to functional network activity could give such projects a clearer compliance runway.

The practical, project-level impact remains uncertain until the rulemaking advances, and nothing in the available evidence supports forecasting token price reactions or adoption timelines. The scope of the proposal is broad, but its effect on any specific network cannot be assessed from the current filing alone.

The proposal sits alongside other active SEC crypto workstreams, including the agency's decision to open a comment period on a Cboe 3x Bitcoin and Ethereum ETF proposal. For token teams building AI infrastructure, the lifecycle framing is the element to watch, because it addresses the transition from security to functional asset that current U.S. rules leave undefined.

Related coverage: Bitcoin Nears $80K as ETF Bid Fades | Top Crypto News Aug. 22; South Africa Cross-Border Crypto Reporting Rules Proposed.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.