What does the SEC do in crypto?

The Securities and Exchange Commission (SEC) is the federal agency that oversees US securities markets. In crypto, it decides which tokens and deals fall under securities law, supervises the funds and firms that handle them, and pursues investment fraud. As of October 2026 it is writing crypto-specific rules instead of relying mainly on lawsuits.

Which parts of crypto does the SEC cover?

A security is an investment such as a stock, a bond or an "investment contract". Its crypto work falls into four areas:

• Offerings. A company that raises money by selling tokens as an investment must register the sale or qualify for an exemption. The test is explained in Is crypto a security?
• Intermediaries. A crypto exchange, broker or investment adviser that deals in securities must register and follow custody and conduct rules.
• Funds. The SEC approves the exchange rules that let crypto funds trade. Spot bitcoin ETFs began trading in January 2024. In September 2025 the agency approved generic listing standards, so exchanges can list qualifying crypto funds without a separate approval for each.
• Enforcement. It can sue over fraud and unregistered sales.

How has its approach changed?

Until early 2025 the SEC set crypto policy mostly through court cases, including a 2023 lawsuit against the exchange Coinbase. In January 2025 the agency formed a Crypto Task Force to draw clearer lines. A month later it dropped the Coinbase case, saying its views on crypto had been expressed largely through enforcement, without public input. Paul Atkins became chairman in 2025.

What rules is it writing in 2026?

• March 17. With the CFTC, it issued an interpretation that sorts crypto assets into five categories and says most are not themselves securities.
• August 18. It proposed Regulation Crypto Assets. Token issuers could raise up to $5 million over four years, or up to $75 million a year, with tailored disclosure. A safe harbor would end a token's investment-contract status once the issuer has finished, or permanently stopped, the work it promised. Comments are due October 20, 2026.
• October 1. It proposed custody rules that would let investment advisers and funds hold crypto, including with state trust companies.

None of these proposals is final as of October 2026.

What do critics say?

Critics, including Democratic staff on the Senate Banking Committee, argue that lighter treatment for crypto creates a two-tier system with weaker investor protection.

The five-seat commission is also short-handed. Press reports say it has had two members, both Republicans, since Commissioner Hester Peirce left on October 2, 2026.

Agency rules can be changed by a later commission. The CLARITY Act, which would have set the lines in statute, failed a Senate vote in September 2026.

Rules differ by country and state and change often. Check the SEC's website or a qualified professional for a specific case.