AFREF submitted a comment opposing the Securities and Exchange Commission’s proposed rule that would create a novel, new set of exemptions, loopholes, and safe harbors that would allow crypto firms to sell tokens without needed investor protections or disclosures. The rule would lock-in privileges and profits for crypto insiders and early favored investors while individual crypto buyers are subject to crypto’s widespread market manipulation, deception, and fraud. The proposed rule would amplify the risks and harms from crypto token offerings as well as undermine the existing financial regulatory frameworks that are designed to protect market integrity and promote financial stability.
October 20, 2026