SEC Crypto Safe Harbor Proposal Submitted for Review! Eligible crypto projects can begin operations without registration

SEC Chair Paul Atkins confirms that the crypto safe harbor framework has been submitted to the White House for review, aiming to introduce a new startup exemption and innovation exemption, 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 the early stage—has already been submitted to the White House for review.

On Monday, Paul Atkins revealed at a digital assets summit jointly hosted by Vanderbilt University and the Blockchain Association that the proposal, first unveiled last month, has now entered the final review process within the White House’s administrative system. The final checks and review are being carried out by the Office of Information and Regulatory Affairs (OIRA), which is under the U.S. Office of Management and Budget (OMB).

We will soon introduce regulatory rules for cryptocurrencies. The proposal is currently in the OIRA review stage, and this is indeed an exciting step—it’s also the last move 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, designed to allow crypto startups to raise operating funds smoothly while balancing investor protection.

Under the proposal, this exemption would allow crypto projects to launch without needing to register immediately, and to raise a certain amount of money 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 issued by the SEC in March 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 what conditions digital assets would be deemed “securities.”

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

At the same time that the SEC is actively pushing for a 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 moving slowly, repeatedly encountering setbacks.

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

He explained that, compared with administrative rules that could be changed at any time due to shifts in political parties and a new president taking office, bills passed by Congress through the full process have real staying 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 aren’t easily overturned. **

“Innovation Exemption” sparks a tug-of-war between Wall Street and crypto circles

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

However, this exemption concept has sparked fierce debate over the past year between crypto advocates and traditional financial institutions. Traditional Wall Street players are worried that an overly broad exemption could weaken investor protection mechanisms and market surveillance.

The market-making giant Citadel Securities has strongly urged that the U.S. SEC should develop rules through formal “Notice-and-comment” administrative procedures. By contrast, the Blockchain Association pushed back on Monday, arguing that cumbersome procedures are not absolutely necessary. It said the SEC has previously used exemption mechanisms multiple times and that it absolutely has the legal authority to exercise that mechanism.

In response, Paul Atkins took the side of the crypto camp at the summit, clearly stating that the SEC does indeed have the authority to advance an exemption mechanism. He said:

We’re about to publish the specific details regarding the Innovation Exemption. I’m quite excited about it—in this area, we still have a tremendous amount of room to innovate.

• This article is republished with authorization from: 《Block.Cube》
• Original title: 《SEC “Crypto Safe Harbor” Proposal Submitted for White House Review! Chair Paul Atkins: to be rolled out in the short term》
• Original author: Block Sis MEL