Progress on a potential crypto safe harbor framework is now entering a key regulatory phase as it is up for White review.
Summary
- SEC has submitted its crypto safe harbor proposal to the White House for review ahead of public release.
- Framework introduces startup and fundraising exemptions along with a pathway for assets to exit securities classification.
US Securities and Exchange Commission Chair Paul Atkins said the agency’s proposed “Regulation Crypto Assets” package has been submitted to the Office of Information and Regulatory Affairs, placing it under White House review ahead of publication.
“We will have reg crypto that we will be proposing here shortly. It’s in fact at OIRA right now, which is the next step before being published,” Atkins said during remarks at the Digital Assets and Emerging Technology Policy Summit.
The regulatory process now moves through OIRA review before publication in the Federal Register, where it will be opened for public comment. That stage often determines how proposals are adjusted before any final adoption.
As previously reported by crypto.news, Atkins first detailed plans for the framework earlier this month. The proposal outlines a three-part framework designed to address how crypto projects raise capital and transition out of securities classification.
One component introduces a startup exemption, allowing early-stage ventures to raise funds over a four-year period with lighter disclosure requirements. Another creates a fundraising exemption that permits issuers to raise capital within a 12-month window while maintaining access to other registration exemptions under federal securities laws.
A central feature of the package is an investment contract safe harbor. Under this approach, certain digital assets could fall outside securities classification once project teams step back from managerial roles that were previously promised or implied during fundraising.
Atkins indicated that parts of the framework are still being refined, with the SEC seeking industry input to ensure the rules are workable in practice. Additional elements, including exemptive relief and safe harbor protections, are being built into the proposal as the agency shapes the final structure.
Meanwhile, the commission, led by Paul Atkins, has also stepped up efforts to ease its enforcement-first approach and clarify other parts of the crypto market.
The SEC has signed a Memorandum of Understanding with the Commodity Futures Trading Commission. Both agencies have agreed to eliminate any friction that could hamper rule-making in the future.
Lawmakers are also negotiating whether the Digital Asset Market Clarity Act should allow stablecoin yields.
