Grayscale: SEC Proposal Could Boost ETH, SOL and BNB

Grayscale’s Head of Research, Zach Pandl, outlined an analysis on Aug. 19 linking the Securities and Exchange Commission’s proposed Regulation Crypto Assets, filed Aug. 18, to potential increases in on-chain token issuance and U.S. issuer and investor participation. The note identifies Ethereum, Solana and BNB Chain as networks that could see more activity and value flow to their native tokens: ether (ETH), solana (SOL) and binance-coin (BNB).

The SEC proposal would create two offering paths for newly issued crypto fundraising. One path would allow eligible issuers to raise up to $5 million over four years. A second path would permit offerings up to $75 million in a 12-month period but would require expanded disclosures, financial statements and ongoing reporting. Both routes would remain subject to federal antifraud and antimanipulation rules and would require narrative disclosures to investors.

Pandl highlighted the proposal’s conditional safe harbor, which would make it possible for certain crypto assets to stop being treated as investment contracts if they meet specified conditions. He wrote, “The SEC has proposed Reg Crypto, a set of rules that would facilitate token-based fundraising.” He added that the proposal addresses regulatory ambiguity that has affected token fundraising.

On the potential market effects, the note says greater token issuance could bring more U.S. projects and investors on-chain, increase demand for network services and potentially channel value to native tokens. Pandl wrote, “If the new rules can stimulate more issuance activity, that will bring more US issuers and investors onchain and likely drive value back to the underlying blockchains and their native tokens, including ETH, SOL, and BNB.” Grayscale also cautioned that increased issuance would not guarantee higher token prices and that the final rule text could change after public comment and SEC review.

The proposal targets newly issued tokens used to finance blockchain projects and does not address tokenized representations of existing public-company shares, which involve different legal structures and disclosure requirements. The SEC has said tailored offering routes could reduce incentives for developers and issuers to operate outside the United States.

The SEC and the Commodity Futures Trading Commission are coordinating to clarify jurisdictional boundaries between securities and derivatives markets. Regulation Crypto Assets is a proposal and cannot support compliant offerings until the SEC completes its rulemaking. Its final impact will depend on eligibility standards, issuer participation, investor demand and which blockchains host new token offerings. Investors would continue to face trading and market risks regardless of any final rule.