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 introduce a new startup exemption and an innovation exemption—reshaping the logic behind digital asset oversight.

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

On Monday, Paul Atkins said, while attending a digital asset summit jointly organized by Vanderbilt University and the Blockchain Association, that this proposal—first unveiled last month—has now entered the final review stage within the White House’s administrative system, with the final checks 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 soon present regulatory rules for cryptocurrencies. The proposal is currently in the OIRA review stage, and this is indeed an exhilarating step—the final one before formal promulgation.

Among the safe harbor proposals put forward by Paul Atkins, the most closely watched by the market is the “Startup Exemption” clause, which aims to help crypto startups raise operating capital smoothly while still protecting investors.

Under the proposal, the exemption would allow crypto projects to begin operations without having to register immediately, and to raise a certain amount of funds 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 issued by the SEC in March this year. For the cryptocurrency industry, the token taxonomy guidance is undoubtedly a historic milestone—this is the SEC’s first time, in an official document, to clearly define in what situations and under what conditions digital assets would be deemed “securities.”

Regulation and obstacles: legislation 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 difficult, repeatedly encountering obstacles.

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

He explained that, compared with administrative rules that could be changed at any time by political turnover—such as a new president taking office—bills that pass through Congress with three readings have real staying power. He said:

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

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

On the other hand, the SEC is currently also drafting an “Innovation Exemption” mechanism. The idea is similar to creating a “regulatory sandbox” for on-chain assets, allowing industry players 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 advocates and traditional financial institutions. Traditional Wall Street forces worry that an overly broad exemption could weaken investor-protection mechanisms and market oversight.

Citadel Securities, a major market maker, strongly urged that the U.S. SEC should develop regulations through the formal administrative process of “Notice-and-comment.” In contrast, the Blockchain Association countered on Monday, arguing that cumbersome procedures are not absolutely necessary—because the SEC has adopted exemption mechanisms multiple times in the past and absolutely has the authority to exercise that mechanism in accordance with 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 drive the adoption of an exemption mechanism. He said:

We are about to publish the specific details regarding the Innovation Exemption. I’m quite excited about this—in this field, there is a lot of space for us to pioneer.

• This article is republished with permission from: 《Blockker》
• Original title: 《SEC “Crypto Safe Harbor” Proposal Submitted to the White House for Review! Chair Paul Atkins: Issued in the Short Term》
• Original author: Crypto Sis MEL