SEC crypto safe harbor proposal submitted for review! Eligible crypto projects can launch without registration

SEC Chair Paul Atkins confirms that the crypto safe harbor framework has been submitted to the White House for review. Plans include a new startup exemption and an innovation exemption, reshaping the regulatory logic for digital assets.

SEC Chair Gary A***tkin? (Paul Atkins) confirms that the proposal for a “Safe Harbor” framework—widely expected by the cryptocurrency industry and intended to allow projects to be exempt from registration in their early stages—has already been submitted to the White House for review.

On Monday, Paul Atkins revealed at a digital assets summit co-hosted by Vanderbilt University and the Blockchain Association that the proposal, which first made its debut last month, has now entered the final review stage within the White House administrative system. The final scrutiny is being conducted by the Office of Information and Regulatory Affairs (OIRA) under the U.S. Office of Management and Budget (OMB).

We will soon roll out regulatory rules for cryptocurrencies. The proposal is currently in the OIRA review phase—this is truly encouraging, as it is the last step before formal issuance.

Among the safe harbor proposal Paul Atkins put forward, the clause that has drawn the most attention from the market is the “Startup Exemption.” Its goal is to allow crypto startups to raise operating funds smoothly while also protecting investors.

Under the proposal, this exemption would allow crypto projects to begin without having to register immediately, and to raise a certain amount of funding within 4 years, provided that they must disclose the necessary information.

In addition, Paul Atkins also proposed the concept of an “Investment Contract Safe Harbor,” which would complement the Token Taxonomy guidance released by the SEC in March this year. For the cryptocurrency industry, the token taxonomy guidance is undoubtedly a historic milestone: this is the first time the SEC has clearly defined in official documents under what circumstances and what conditions digital assets would be deemed “securities.”

Regulation and obstacles: legislation and administrative rules move in parallel

At the same time that the SEC is actively pushing forward its regulatory framework, the U.S. Congress is also working to regulate the cryptocurrency industry through legislation. However, over the past year, the legislative process has been slow and repeatedly faced setbacks.

Paul Atkins said that legislation is necessary because regulatory agencies like the SEC “need legal authority that is clear and unshakeable (Chiseled in Stone).”

He explained that, compared with administrative rules that can change at any time due to shifts in political parties or a new president taking office, bills passed by Congress through the three readings process have real staying power. He said:

We can certainly do a lot on the regulatory front, but in the end we still must ensure that these rules truly take root and aren’t easily overturned.

“Innovation Exemption” sparks power struggle between Wall Street and the crypto world

On the other hand, the SEC is also working on an “Innovation Exemption” mechanism. The idea is similar to creating a “regulatory sandbox” for on-chain assets, allowing businesses to test innovative financial products and services in a controlled environment.

However, this exemption concept has sparked intense debate over the past year between crypto proponents and traditional financial institutions. Traditional Wall Street players are concerned that an overly broad exemption could weaken investor protection mechanisms and market oversight.

Citadel Securities, a major market maker, urged strongly that the SEC should set rules by following a formal “Notice-and-comment” administrative process. By contrast, the Blockchain Association pushed back on Monday, arguing that burdensome procedures are not absolutely necessary. It also noted that the SEC has previously adopted exemption mechanisms multiple times and unquestionably has the authority to exercise the mechanism as required by law.

In support of the crypto industry’s position at the summit, Paul Atkins made it clear that the SEC does in fact have the authority to promote an exemption mechanism. He said:

We’re going to publish the specific details regarding the innovation exemption. I’m very excited about it—in this field, we still have a great deal of room to pioneer.

• This article is republished with authorization from: 《Blockcast》
• Original title: 《SEC “Crypto Safe Harbor” Proposal Submitted to the White House for Review! Chair Paul Atkins: Issued in the short term》
• Original author: Block Sister MEL