The U.S. Securities and Exchange Commission has proposed its first formal crypto rulemaking, Regulation Crypto Assets, creating two registration-free paths for token sales. The smaller track would allow up to $5 million over four years, while the larger would permit up to $75 million in any 12-month period and require financial statements plus ongoing reporting. The proposal also includes narrative disclosure standards, state-law preemption for qualifying offerings and certain secondary trades, and a safe harbor that would end investment-contract treatment once an issuer finishes or permanently stops the essential managerial efforts it promised. Paul Atkins said the framework traces back to Hester Peirce’s Token Safe Harbor proposal from February 2020. The piece says the SEC had spent a decade regulating crypto fundraising through lawsuits rather than published rules, which pushed issuers toward Cayman and Swiss foundations, non-U.S. buyers, Reg D rounds, airdrops and points programs. Tyler Warner’s Morning Minute also notes broader market moves, including Bitcoin ETF inflows, Citi’s planned Bitcoin custody launch, Robinhood CEO Vlad Tenev’s call to modernize securities rules for tokenized stocks, and several other market updates.

U.S. President Donald Trump is scheduled to host crypto industry executives at the White House on Wednesday for talks centered on regulation, according to a report first surfaced by POLITICO last week and later covered by Bitcoin Magazine. The expected guest list reportedly includes executives from Coinbase, Payward, the parent company of Kraken, and Blockchain.com, though the specific prediction market executives attending had not been identified in the report. The meeting comes as Washington continues to reshape its approach to digital assets even though the long-awaited market structure bill, the Clarity Act, has been delayed. The U.S. Securities and Exchange Commission on Tuesday put forward its own framework for crypto asset offerings, moving ahead while the legislation remains stalled. Lawmakers who support the sector had wanted the bill passed before Congress left for its August recess, but the vote is now expected in September. The article also notes that Democrats have criticized Trump over alleged conflicts of interest tied to his family’s crypto ventures, claims that Trump and the White House deny. Bitcoin Magazine said Trump has reported more than $1.4 billion in income from his family’s cryptocurrency businesses.

The U.S. Securities and Exchange Commission released a draft rule, Regulation Crypto Assets, on Aug. 18 that would give token issuers a new legal fundraising route. Startups could raise up to $5 million over as long as four years, while larger projects could raise $20 million or $75 million in 12-month windows under different tiers. The proposal does more than set caps: it ties token fundraising to disclosures on governance, development, security risks, finances and management, and it introduces a “graduation” concept based on whether the issuer has completed the promises made when selling the token. Under the draft, the SEC would focus on the investment relationship created by the fundraising process rather than on whether a token is “sufficiently decentralized.” Issuers would need to state what the money will be used for, and the token could only move into a safe harbor after the project’s key commitments are fully completed or permanently abandoned, followed by a public certification and analysis filing. Gabriel Shapiro, a corporate securities lawyer, said the framework could push teams to say less and promise less in public. The proposal could also affect airdrops and points programs. Retrospective airdrops that reward past behavior may fit within the SEC’s earlier guidance, while pre-announced point campaigns that link future tokens to trading, purchases or tasks are more likely to create an investment relationship and count toward the $5 million startup exemption. The rule is still only a draft, and the SEC is seeking public comment.

A long-form piece published by TechFlowPost argues that crypto venture capital is not disappearing after the speculative boom. It is being repriced. The article says the market now shows a split between strong top-line industry data and weak early-stage liquidity: institutions hold more than $175 billion in crypto assets through exchange-traded products, onchain projects generated $11 billion in fees over the last 12 months, and the sector logged $8.6 billion in M&A plus 11 IPOs. Yet Galaxy Research data cited in the piece shows only eight new VC funds launched last quarter, the lowest level since 2020, while quarterly investment fell to $4 billion, or roughly $16 billion annualized, about half of 2021’s $31 billion pace. The authors trace the problem to a crypto funding model built around early token listings and quick liquidity rather than durable business value. They argue that many token models failed because projects lacked real business models and token holders had no legal claim on operating income. In their view, the industry is now moving toward structures that tie revenue to tokens, including buybacks, while also reopening other exit routes such as acquisitions and IPOs. The article identifies three sectors that have already reached sustainable product-market fit: stablecoins, prediction markets and onchain perpetuals. It also points to tokenized Treasuries, tokenized equities, machine payments, onchain credit and compliance infrastructure as areas where early-stage opportunities may now be forming. The broader conclusion is that crypto investing is shifting away from broad thematic betting and toward specialized, patient capital focused on business quality, regulation and long holding cycles.

The U.S. Securities and Exchange Commission on Aug. 18 released a draft called Regulation Crypto Assets, laying out a new path for token-based fundraising in the U.S. The proposal would let early-stage projects raise up to $5 million over as long as four years, while larger projects could raise $20 million or $75 million within a 12-month period without going through a full securities registration process. In exchange, issuers would have to make detailed disclosures on governance, development plans, security risks, finances, and management, with the highest tier requiring audited financials. The draft keeps existing anti-fraud and anti-manipulation rules in place and bars bad actors from using the exemptions. Its most notable feature is how it treats tokens and the investment relationship around them as separate matters. Instead of focusing on whether a network is sufficiently decentralized, the SEC asks whether the issuer has completed the key promises used to sell the token in the first place. A token may only enter a safe harbor after those commitments are completed or permanently abandoned and the issuer files a public certification and analysis with the SEC. The proposal also addresses airdrops and points programs, drawing a line between retrospective rewards and pre-announced campaigns tied to future tokens. The rule has support from the SEC’s three current commissioners, but it remains a draft pending public comment.

AI-native accounting platform Rillet has raised $100 million in a Series C round, giving the company a $1 billion valuation. ICONIQ led the financing, while existing backers including Sequoia Capital, Andreessen Horowitz, and Oak HC/FT also participated. New investors such as Bain Capital Ventures and Battery Ventures joined the round as well. With this deal, Rillet said its total funding has now exceeded $200 million. The company describes itself as the first truly AI-native accounting platform, built around AI agents that replace traditional manual accounting workflows. According to the announcement, the system can handle hundreds of operations in parallel and produce a complete audit trail. Rillet also said it now serves more than 600 customers, including major AI companies such as Neuralink and Mercor. About 40% of its customer base comes from outside the technology sector, pointing to adoption beyond its core startup and AI clientele.

A draft internal letter obtained by Reuters shows the US State Department is preparing to tell 35 countries that they cannot stay in both Washington’s and Beijing’s AI camps at the same time. Under the draft, any country that joins China-backed WAICO would be excluded from cooperation under Pax Silica, a US-led framework focused on semiconductors, AI models, and critical minerals. The letter is expected to go to the 35 signatories of the June “AI Opportunity Statement,” a group that includes countries such as Japan, South Korea, Australia, the UK, Germany, India, Singapore, Israel, the UAE, Qatar, and Kazakhstan. Reuters said it could not confirm when the letter would be sent or whether the text would change before release. The State Department declined to comment on what it called a leaked internal document. Reuters identified Kazakhstan as the immediate trigger for the move. The country, which holds large reserves of critical minerals, joined Pax Silica in June but also entered Beijing’s orbit, making it the only known country currently tied to both sides. The report also contrasted the pace of the two blocs: WAICO, launched in mid-July and headquartered in Shanghai, signed up 29 countries within a month, while Pax Silica has taken more than half a year to attract about 25 signatories.

ChainCatcher, citing Binance spot market data, reported sharp moves across several tokens. ALICE fell 31.56% over the past 24 hours, while KAITO was down 47.91% for the week. On the upside, RED and YB each hit fresh intraday highs, posting gains of 5.76% and 6.51%, respectively. On the downside, BICO touched a new daily low with an 18.62% decline. KAIA and ACE also fell to new weekly lows, down 9.2% and 55.4%. LISTA and THETA were also described as having surged and then pulled back, with losses of 6.95% and 6.5%. The moves point to heightened volatility in the Binance spot market, according to the data cited in the report.