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, reshaping the regulatory logic for digital assets.

SEC Chair Paul Atkins confirmed that the “Safe Harbor” framework proposal, eagerly awaited by the cryptocurrency industry and allowing projects to be exempt from registration in their early stages, has been submitted to the White House for review.

On Monday, Paul Atkins disclosed at a digital assets summit jointly hosted by Vanderbilt University and the Blockchain Association that this proposal, which first made its appearance last month, is now in the final review process within the White House administrative system. The final vetting and review are being handled by the Office of Information and Regulatory Affairs (OIRA) under the U.S. Office of Management and Budget (OMB).

We will soon propose regulatory rules for cryptocurrencies. The proposal is currently in the OIRA review stage—this is truly exciting as it is the final step before formal issuance.

Among the safe harbor proposals put forward by Paul Atkins, the most closely watched by the market is the “Startup Exemption” provision, aimed at allowing crypto startups to successfully raise operating funds while balancing investor protection.

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

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

Regulation and obstacles: legislative and administrative rules proceed in parallel

At the same time that 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 repeatedly faced setbacks.

Paul Atkins said this is necessary because regulators like the SEC “need a clear and unshakable legal basis (Chiseled in Stone).”

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

On the regulatory front, we can certainly make many efforts, but in the end we must ensure these rules take root for real and are not easily overturned.

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

Meanwhile, the SEC is also working on an “Innovation Exemption” mechanism. The concept 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, over the past year, this exemption idea has sparked intense debate between crypto advocates and traditional financial institutions. Traditional Wall Street players worry that an overly permissive exemption scope could weaken investor protection mechanisms and market oversight.

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

In response, Paul Atkins voiced support for the crypto industry’s stance at the summit, explicitly stating that the SEC does indeed have the authority to push an exemption mechanism. He said:

We are about to publish the specific details regarding the innovation exemption. I’m quite excited about this, and in this field we still have a lot of room to break new ground.

• This article is reproduced with authorization from:《BlockNews》
• Original title:《SEC “Crypto Safe Harbor” Proposal Submitted to the White House for Review! Chair Paul Atkins: To be issued in the short term》
• Original author: Coin Sister MEL