Blockworks Proposes Onchain Disclosure Agent to SEC for Crypto Regulation
MissedBlock Desk · · 3 min read
Updated
Blockworks has submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) proposing the creation of a ‘Qualified Onchain Disclosure Agent’ and advocating for onchain disclosures within the SEC’s proposed Regulation Crypto Assets. Filed between October 19-20, 2026, the proposal suggests aligning federal rules with Blockworks’ existing Token Transparency Framework (TTF).
The SEC announced its proposed Regulation Crypto Assets on August 18, 2026, outlining tailored exemptions for token offerings. Blockworks’ comment letter offers a specific compliance mechanism: approved third-party agents could manage and file disclosures directly on the blockchain. This approach aims to provide a more streamlined and potentially cost-effective path for token projects, particularly startups.
Blockworks’ proposal includes requiring projects to reveal specific deal terms not always readily available to retail investors, such as market-maker agreements, liquidity arrangements, token loans, and payments to promoters. Blockworks suggests that a Qualified Onchain Disclosure Agent model could enable smaller teams to meet federal requirements without building extensive in-house compliance operations.
This proposal builds upon Blockworks’ Token Transparency Framework (TTF), an open-source standard launched on June 18, 2025. The TTF has garnered industry support, including from the Transparency Alliance, which launched in May 2026. Members of the Transparency Alliance, such as Coinbase and Kraken, could find a transition to an onchain disclosure system smoother if the SEC adopts a structure similar to the TTF.
Reports indicate that by late 2026, between 84 and 160 disclosures had been made under the TTF, reflecting varying counts across different sources. The SEC’s proposed Regulation Crypto Assets includes a startup exemption allowing up to $5 million in fundraising over four years, and a two-tier exemption with a cap of $75 million within a 12-month span. Blockworks’ proposal is seen as particularly beneficial for startups operating under these smaller exemption thresholds, where legal costs can represent a significant portion of the raised capital.
However, the SEC’s adoption of Blockworks’ proposal remains uncertain. The final rules for Regulation Crypto Assets are still to be determined, and the SEC’s response to industry feedback, including this comment letter, will shape the future regulatory landscape for crypto assets. The exact number of disclosures under the TTF by late 2026 also presents a point of uncertainty, with figures ranging from 84 to 160.
Blockworks suggests that if the SEC were to adopt a disclosure structure resembling the TTF, protocols already utilizing the standard would have a significant head start in compliance efforts.
Why This Matters
The materials describe a narrow update: Blockworks filed a comment letter on October 19-20, 2026, proposing the creation of a Qualified Onchain Disclosure Agent and advocating for onchain disclosures and the inclusion of specific deal types in regulatory filings for token offerings. The SEC’s final decision on Regulation Crypto Assets and Blockworks’ proposals.
Broader Context
Source materials place the factual news in this context: The crypto media and data firm filed a comment letter on October 19-20, 2026, right as the October 20 deadline arrived.