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, aiming to roll out a new startup exemption and an innovation exemption, reshaping the regulatory logic for digital assets.

SEC Chair Gary Gensler? Paul Atkins? confirms that, a proposal for the much-anticipated “Safe Harbor” framework—allowing approved projects to be exempt from registration in their early stages—that 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 the proposal, first introduced last month, has now entered the final review stage within the White House administrative system. The final gatekeeping and approval are being handled by the Office of Information and Regulatory Affairs (OIRA) under the White House Office of Management and Budget (OMB).

We will very soon put forward regulatory rules for cryptocurrencies. The proposal is currently in the OIRA review stage, and this is truly encouraging—this is also the final step before formal issuance.

Among the safe harbor proposal put forward by Paul Atkins, the most closely watched by the market is the “Startup Exemption” clause, intended to allow cryptocurrency startups to raise operating capital smoothly while also protecting investors.

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

Regulation and obstacles: legislative and administrative rules proceed 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, legislative progress has been sluggish and repeatedly met with obstacles.

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

He explained that, compared with administrative rules that could be changed at any time by shifts in party control or a new president taking office, bills passed by Congress through three readings have real lasting power. He said:

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

“Innovation Exemption” sparks a standoff between Wall Street and the crypto community

Meanwhile, the SEC is also working on an “Innovation Exemption” mechanism. The idea is similar to building a “regulatory sandbox” for on-chain assets—allowing market participants to test innovative financial products and services in a controlled environment.

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

Citadel Securities, a market-making giant, strongly called for the U.S. SEC to set 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 also adopted exemption mechanisms multiple times in the past, and it absolutely has the authority to exercise that mechanism under the law.

In response, Paul Atkins backed the crypto community’s position at the summit, clearly stating that the SEC indeed has the power to promote 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 space, we still have a tremendous amount of room to pioneer.

• This article is reprinted with authorization from: 《Block Creator》
• 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: Block Sister MEL