Galaxy Research has said the SEC’s proposed Reg Crypto framework could give hundreds of existing tokens a formal route out of investment contract status.

Galaxy Research, in an Aug. 21 analysis, said the proposal could replace years of uncertainty over when an investment contract tied to a token ends with a filing and a recorded date.

Alex Thorn, Galaxy’s head of firmwide research, said the first visible effect could be the resolution of securities-law questions surrounding tokens already in circulation, rather than a fresh wave of public token sales.

The SEC estimated that about 475 issuers would file transition reports under the investment contract safe harbor each year. By comparison, the agency expects approximately 130 annual…