The SEC’s Crypto Policy Update: What It Means for Startups in 2025

The U.S. Securities and Exchange Commission (SEC) rolled out a significant update to its cryptocurrency policy framework for 2025, aiming to bring greater clarity to how digital assets are classified and regulated. For blockchain startups, this long-awaited update provides a more structured path for compliance, a shift that could influence everything from fundraising strategies to platform design choices.

A main component of the SEC’s update is its refined classification process for digital assets. Tokens, such as meme coins that exist purely to facilitate transactions or provide platform access, are more likely to be treated as non-securities, while projects that market tokens as speculative investment opportunities, especially those with profit-sharing, staking rewards, or governance rights, will remain under stricter securities oversight. This clarification is especially relevant for sectors like decentralized finance (DeFi), blockchain gaming, and online casinos that accept cryptocurrency payments.

What It Means for iGaming Startups

One area where the SEC’s updated crypto policy is expected to have an immediate impact is the iGaming sector, especially for online casinos that accept crypto. For instance, platforms like Golden Panda Casino have been at the forefront of using blockchain technology and cryptocurrencies to offer players instant deposits, faster withdrawals, and greater transparency in game fairness.

The SEC’s new rules distinguish between platforms that accept crypto simply as a payment method and those that build their business models around issuing or promoting their own tokens. For startups in the iGaming space, this distinction is crucial.

The ability to accept Bitcoin, Ethereum, or stablecoins for player deposits and withdrawals does not, under the updated rules, automatically subject a platform to securities regulation, provided those cryptocurrencies are used purely for transactions and not as speculative assets tied to the casino’s financial performance.

This clarity offers some breathing room for U.S. iGaming platforms. By treating cryptocurrency payments much like credit card transactions or e-wallet deposits, the SEC has created a regulatory environment where iGaming platforms can continue to embrace blockchain technology without the fear of being misclassified as securities issuers.

Impacts on Fundraising and Token Sales

For crypto and blockchain startups, the updated SEC policies also provide clearer rules around token sales and capital raises. Initial coin offerings (ICOs) remain heavily restricted, particularly when marketed to U.S. investors, but the SEC’s existing exemptions like Regulation A+ and Regulation CF remain available in this policy update. This means startups would need to design token offerings to fit within these frameworks.

Under the updated rules, blockchain startups can offer tokens to retail investors as long as those tokens serve a clear functional purpose within the project’s ecosystem. Tokens primarily designed for speculation or profit-sharing still fall squarely under securities law. This framework gives startups pursuing utility-driven projects a clearer compliance roadmap while discouraging speculative token models that were common during the 2017 ICO boom.

The SEC has also signaled that it will work more closely with the Commodity Futures Trading Commission (CFTC) to address cases where digital assets function both as securities and commodities. This collaborative approach could provide additional flexibility for startups working on hybrid projects, such as platforms combining decentralized finance with tokenized real-world assets.

A Shift Toward Global Regulatory Alignment

While the SEC’s 2025 update brings more certainty to the U.S. market, many blockchain startups continue to weigh the advantages of offshore incorporation. Jurisdictions such as Switzerland, Singapore, and the Cayman Islands offer more flexible regulatory environments, allowing startups to experiment with token models and innovative financial products with less red tape.

For U.S.-based founders, this presents a strategic choice: prioritize access to the deep American capital markets by complying with stricter SEC rules or pursue global markets with more innovative but potentially riskier products in friendlier regulatory environments.

Changes for Secondary Markets and Exchanges

The updated SEC framework also puts new requirements on secondary markets, including centralized and decentralized exchanges (DEXs). Platforms listing tokens for trading will need to conduct more thorough due diligence to ensure listed assets are compliant with U.S. securities laws.

This higher bar for exchange listings means startups will need to invest more in legal reviews, transparency initiatives, and investor communications before their tokens gain liquidity on major trading platforms. While this slightly raises barriers to entry, it also helps filter out lower-quality projects and improves investor protection.

A New Era for Blockchain Startups

Overall, the SEC’s 2025 crypto policy update creates a more structured regulatory environment for blockchain startups. Companies that prioritize transparency, clear token utility, and investor protection will have an easier time accessing both U.S. investors and reputable trading platforms.

At the same time, startups that thrive on regulatory flexibility and fast-moving innovation may still prefer overseas jurisdictions. The tension between innovation and regulation — a hallmark of the crypto sector for more than a decade — will continue to shape the strategies and success of blockchain startups in 2025 and beyond.