Galaxy Says SEC’s New Crypto Rules Could End Token Legal Uncertainty

Alex Thorn, Head of Research at Galaxy, highlighted that the SEC’s proposed regulatory framework, “Reg Crypto,” marks a historic milestone for the sector. It represents the first set of rules designed specifically to regulate the public offering and sale of digital assets, moving beyond the shoehorning of traditional securities laws.

The primary impact lies in structuring the token lifecycle (fundraising, disclosure, development, and exit). Under this regime, compliant projects could legally distribute tokens to the general public and, crucially, access a formal pathway to terminate investment contract status once decentralization or operational maturity is achieved—resolving years of legal uncertainty.

While market sentiment remains optimistic, the proposal is at a very early stage and must navigate a 60-day public comment period, alongside potential legislative deliberations in Congress. The next step for market participants will be evaluating disclosure requirements and submitting formal feedback ahead of the final commission vote.

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