The SEC announced formal rulemaking related to crypto assets, aiming to provide the clarity that has been lacking since the early days of crypto. It addresses what happens while a crypto token is caught by securities laws and when that ends. It also provides two fundraising exemptions, one a variation on the Regulation A exemption. In March the SEC provided an interpretation on which this rulemaking is largely based.

Why is the SEC now pursuing rulemaking, given it already provided the interpretation? The interpretation only clarifies the stance of the current SEC. A future Gensler-like SEC could find a token issuer at fault for relying on an interpretation, but not for relying…