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, with plans to roll out new startup exemptions and innovation exemptions to reshape the logic of digital asset regulation.

SEC Chair Paul Atkins confirmed that the long-awaited “Safe Harbor” framework proposal in the cryptocurrency industry—allowing projects to be exempt from registration in the early stages—has already been submitted to the White House for review.

On Monday, Paul Atkins revealed at a digital asset summit jointly hosted by Vanderbilt University and the Blockchain Association that this proposal, which first appeared last month, has now entered the final review stage within the White House administrative system, with the final gatekeeping and review being carried out by the Office of Information and Regulatory Affairs (OIRA) under the U.S. Office of Management and Budget (OMB).

We will very soon put forward regulatory rules for cryptocurrencies. The proposal is currently in the OIRA review phase—this is truly exciting, since it is the final step before formal issuance.

Among the safe harbor proposals put forward by Paul Atkins, the clause that has drawn the most attention from the market is the “Startup Exemption,” aimed at allowing crypto startups to raise operating capital smoothly while also protecting investors.

Under the proposal, this exemption would allow crypto projects to begin without immediately registering, 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 of this year. For the cryptocurrency industry, the Token Taxonomy guidance is undoubtedly a historic milestone—this is the first time the SEC, in an official document, has clearly defined under what circumstances and what conditions digital assets would be considered “securities.”

Regulatory rules and obstacles: legislation and administrative rules go hand in hand

While the SEC is actively pushing 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 has repeatedly faced obstacles.

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

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

We can certainly do a lot on the regulatory front, but in the end we must ensure these rules truly take root and are not easily overturned.

“The Innovation Exemption” sparks a tug-of-war between Wall Street and the crypto world

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

However, this exemption idea has sparked intense debate over the past year between supporters of cryptocurrencies and traditional financial institutions. Traditional Wall Street players worry that an overly broad exemption scope could weaken investor protection mechanisms and market oversight.

For example, market maker giant Citadel Securities strongly urged that the U.S. SEC should develop rules through the formal “Notice-and-comment” administrative process. In contrast, the Blockchain Association pushed back on Monday, arguing that cumbersome procedures are not absolutely necessary: the SEC has previously adopted exemption mechanisms multiple times, and it absolutely has the authority to exercise that mechanism under the law.

In response, Paul Atkins backed the crypto industry’s position at the summit, clearly stating that the SEC does indeed have the authority to push forward an exemption mechanism. He said:

We are about to publish the specific details regarding the innovation exemption. I’m quite excited about this—there is still a tremendous amount of room for pioneering work in this area.

• This article is reprinted with authorization from: 《Blockker》
• Original title: 《SEC “Crypto Safe Harbor” Proposal Submitted to the White House for Review! Chair Paul Atkins: Rolling out Within the Short Term》
• Original author: Blockchain Sister MEL