State securities regulators are calling on the Securities and Exchange Commission to withdraw its proposed regulation for certain crypto issuer exemptions, claiming the rule is “preferential regulation in favor of crypto.”

The North American Securities Administrators Association submitted a letter on the closing day of the 60-day comment period for “Regulation Crypto Assets,” the proposed rule the SEC unveiled in mid-August.

The rule would exempt certain digital asset offerings from securities mandates, with SEC Chair Paul Atkins claiming the rule would “provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws.”

However, in this week’s letter, NASAA…