Blockworks Seeks Onchain Disclosures in SEC Crypto Rules
Blockworks has urged the US Securities and Exchange Commission (SEC) to strengthen its proposed Regulation Crypto Assets with more detailed token disclosures and a new category of “Qualified Onchain Disclosure Agent.” In a comment letter submitted around the October 20 deadline, the firm proposed that approved third parties help prepare and publish searchable, versioned filings. It also wants the SEC to allow third parties to compile disclosures for tokens without current filings and preserve records for projects that stop reporting.
Blockworks’ proposed onchain disclosures include token loans, liquidity arrangements, market-maker and exchange agreements, and tokens or other payments given to advisers, influencers and promoters. It also seeks disclosure of key wallet and smart-contract addresses, plus clearer explanations of token-supply calculations. The recommendations draw on its open-source Token Transparency Framework, which covers allocations, governance and risk assessments.
The SEC’s August proposal sets broad disclosure topics but does not specify these detailed requirements. It includes a startup exemption allowing up to $5 million in fundraising over four years and a separate exemption allowing up to $75 million over 12 months. The SEC has not decided whether to adopt Blockworks’ recommendations. If adopted, the proposed onchain disclosures could improve transparency and ease compliance for smaller projects, while potentially giving projects already using the framework a head start. For traders, the rules could affect perceptions of token supply, liquidity and project risk, but do not directly signal a price move for any specific cryptocurrency.
Neutral
The proposals concern disclosure rules for token offerings, not the fundamentals or immediate supply and demand of a specific cryptocurrency. In the short term, the request is unlikely to create a direct price catalyst; traders may monitor the SEC’s response and reassess project-specific risks as details emerge. If adopted, more consistent onchain disclosures could help traders evaluate token supply, liquidity arrangements and promotional payments, potentially reducing information gaps and uncertainty over the longer term. However, implementation could add compliance costs, and the SEC has not yet accepted the recommendations. The news therefore has uncertain, indirect market implications rather than a clear bullish or bearish signal for any coin.