Digital Assets Regulation Finally Getting the Attention it Deserves

On August 18, 2026, the U.S Securities and Exchange Commission (SEC) started the federal rulemaking process for a proposed rule titled “Regulation Crypto Assets”. The SEC says that the rule will clarify three things: when digital asset activities come under SEC jurisdiction, when a digital asset is a security, and what enforcement market participants can expect. 

This is welcome news for us and the rest of the digital asset industry. HODL’s financial infrastructure makes use of blockchain technology and digital assets to facilitate greater inclusion and accessibility between retail and institutional investors, and alternative asset managers.

The proposed rule is more than 400 pages long. Our initial review shows that the rule contains a number of definitions that provide greater clarity about the ‘security/non-security’ status of certain digital assets than the Howey test, which is a judicially well-settled, but still subjective standard. It also highlights that certain digital asset tokens may be a security at the time of issuance, but later lose that designation as they are traded, burned, or otherwise handled by the holder. This is a notable inclusion by the SEC, and we’re looking forward to providing a comment during the open comment period for this proposed rule about this element.

The next pivotal moment for digital assets will come in September, when the Clarity Act is scheduled for a cloture vote – a positive outcome then will add to the momentum that the proposed Regulation Crypto Assets has started building.

The SEC's Press Release: ho-dl.com/ReleaseSECAug2026

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