A proposed regulatory safe harbor framework from the Securities and Exchange Commission (SEC), designed to allow crypto projects to launch without immediate registration, has been submitted to the White House for review. SEC Chair Paul Atkins announced the development at a digital assets summit hosted by Vanderbilt University and the Blockchain Association.
Atkins stated the proposal is now with the Office of Information and Regulatory Affairs (OIRA), a division of the Office of Management and Budget that reviews federal regulations before publication. "We'll have reg crypto that we'll be proposing here shortly," Atkins said. "It's in fact at OIRA right now, which is the next step before being published, so that's exciting."
The proposal, introduced last month, includes a "startup exemption" permitting crypto stakeholders to raise capital within a four-year period while adhering to specific investor protection disclosures. It also pairs with an "investment contract safe harbor" and the token taxonomy-based interpretive guidance the SEC released in March. That taxonomy was a landmark, providing the SEC's first clear, consolidated parameters for determining when digital assets are considered securities.
Atkins emphasized the need for durable legislation, arguing that while regulators can act, they "need something chiseled in stone" to ensure rules are not easily overturned by future administrations. "We can do a lot regulatorily, but we just have to make sure it takes root and can't be done away with," he added.
Separately, the SEC is developing an innovation exemption to function as a regulatory sandbox for on-chain assets. This concept has sparked debate, with traditional finance entities like Citadel Securities advocating for formal rulemaking, while the Blockchain Association contends the SEC already has the authority to grant exemptions. Atkins confirmed the agency's authority to pursue this path and promised forthcoming parameters.
