US Securities and Exchange Commission (SEC) Chair Paul Atkins suggested that the agency should explore a “safe harbor” framework to offer certain crypto companies and tokens a regulatory exemption.
Speaking at a crypto industry event in Washington, DC, on Tuesday, Atkins outlined that his safe harbor proposal would include a “startup exemption,” a “fundraising exemption,” and an “investment contract safe harbor.”
“It’s time to move from diagnosing the problem to delivering solutions,” he said. “A safe harbor would give crypto innovators tailored pathways to raise capital in the US while ensuring proper investor protections.”
On the same day, the SEC, together with the Commodity Futures Trading Commission (CFTC), released an interpretation clarifying which types of cryptocurrencies are considered securities and how “non-security crypto assets” could still fall under securities regulations.
Atkins Proposes Crypto Exemptions
In his remarks, SEC Chair Paul Atkins said the agency should consider a “startup exemption” to allow crypto companies to raise a set amount of capital or operate for a few years, giving them enough “regulatory runway” to reach maturity.
He also proposed a “fundraising exemption,” which would let investment contracts involving crypto raise up to a specified amount within any 12-month period without having to register under securities laws.
Atkins explained that his “investment contract safe harbor” idea would give crypto issuers and investors clarity on when assets fall under securities regulations. The safe harbor could take effect once an issuer has “permanently ceased all essential managerial efforts” promised for the asset.
He said the SEC plans to release proposed rules for these exemptions for public comment in the coming weeks.
However, Atkins noted that “only Congress can ensure that regulation in this area is future-proofed through comprehensive market structure legislation.” A bill defining the SEC’s crypto authority is currently stalled in the Senate amid ongoing negotiations over its provisions.
