US Securities and Exchange Commission Chair Paul Atkins said a major crypto market safe harbor proposal has been sent to the White House for review.
Speaking at the Digital Assets and Emerging Technology Policy Summit on Monday, Atkins noted that the Regulation Crypto Assets proposal — first introduced by the SEC in mid-March — is now with the Office of Information and Regulatory Affairs, marking the next step before potential publication.
“We will have Reg Crypto that we’ll be proposing shortly. It’s currently at OIRA, which is the next stage before being released,” he said.
The proposal centers on three key components: a startup exemption, a fundraising exemption, and an investment contract safe harbor for crypto issuers.
If adopted as part of the SEC’s regulatory framework, the measures could encourage greater innovation in the US crypto sector while offering clearer guidelines for market participants.
Atkins added that the SEC is seeking input from industry stakeholders to ensure the framework is practical and effective, noting that additional elements — including safe harbors and exemptive relief provisions — are being built into the proposal.
The SEC’s crypto proposal is continuing to take shape as it moves through the regulatory process.
Typically, the agency first votes to approve a formal proposal before sending it to the Office of Information and Regulatory Affairs (OIRA) for review. Once that process is complete, the proposal is published in the Federal Register and opened for public comment.
Under the current framework, the startup exemption would allow projects to raise funds up to a specified limit over a four-year period with reduced disclosure requirements. Meanwhile, the fundraising exemption would permit issuers to raise a set amount within 12 months while still maintaining eligibility for other registration exemptions under federal securities laws.
The proposal also includes an investment contract safe harbor, which would shield certain digital assets from being classified as securities once project teams have stepped back from any managerial role that was initially promised or implied as part of the investment arrangement.
