SEC Chair Paul Atkins has proposed a regulatory “safe harbor” for crypto companies and tokens, outlining three specific exemptions. This initiative aims to provide clearer regulatory pathways while maintaining investor protections. The SEC and CFTC also released a formal interpretation clarifying the application of securities laws to crypto assets.
US Securities and Exchange Commission chair Paul Atkins stated the agency should consider a regulatory carveout for crypto. He said in remarks that his safe harbor proposal consists of a startup exemption, a fundraising exemption, and an investment contract safe harbor. “It is past time for us to stop diagnosing the problem and start delivering the solution,” Atkins stated.
He argued such a harbor would provide bespoke capital-raising pathways in the U.S. The SEC and the Commodity Futures Trading Commission concurrently issued an interpretation on crypto asset classification. This clarified what types are securities and how non-security assets could still fall under securities laws. Atkins noted on social media that the interpretation acknowledges most crypto assets are not themselves securities.
Atkins detailed his ideas for three specific exemptions. A startup exemption would allow companies to raise a defined amount or operate for years with regulatory runway. A fundraising exemption would permit investment contracts involving crypto to raise up to a particular amount annually without registration.
His investment contract safe harbor would offer certainty about when assets are subject to securities laws. It could apply once an issuer has permanently ceased all essential managerial efforts it promised. Atkins expects the SEC to release proposed rules for public comment in coming weeks.
He added that only Congress can ensure future-proofed regulation via comprehensive market structure legislation. A bill outlining the SEC’s crypto remit is currently stalled in the Senate due to ongoing negotiations.
