The SEC votes August 14 on its first formal crypto rulemaking. The proposal creates three exemption pathways, a decentralization off ramp for tokens, and a framework that could make congressional legislation optional. Here is what each provision means in practice.

Summary

• The SEC will hold an open meeting on August 14 to vote on publishing Regulation Crypto, a roughly 400 page proposed rule that would create a tailored offering regime for investment contracts involving crypto assets, the first time the agency has attempted formal rulemaking for digital assets rather than regulating through enforcement.
• The proposal includes three distinct pathways: a startup exemption allowing teams to raise approximately $5 million…