SEC’s Crypto Safe Harbor Framework Now Under White House Review

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Key HighlightsPaul Atkins, SEC Chair, announced the Regulation Crypto Assets framework has reached the Office of Information and Regulatory Affairs (OIRA) for White House evaluationThe framework encompasses three core components: a startup exemption, a fundraising exemption, and an investment contract safe harborUnder the startup exemption, cryptocurrency ventures could secure funding across a four-year timeline with reduced disclosure obligationsThe investment contract safe harbor aims to shield specific digital assets from securities classification after project leadership concludes its active management roleA supplementary innovation exemption is in development, potentially establishing a regulatory sandbox for blockchain-based assetsThe Securities and Exchange Commission’s cryptocurrency safe harbor framework has advanced to a pivotal stage in the regulatory approval process. During a Monday announcement, SEC Chair Paul Atkins revealed that the Regulation Crypto Assets proposal has reached the Office of Information and Regulatory Affairs. This marks the penultimate phase before the regulation appears in the Federal Register for stakeholder feedback.BREAKING: SEC Chair Atkins says crypto safe harbor proposal now at White House for final review"We'll have reg crypto that we'll be proposing here shortly. It's in fact at OIRA right now."The framework lets crypto projects raise capital without immediate registration during… pic.twitter.com/CThsA8zA5g— Coin Bureau (@coinbureau) April 7, 2026The disclosure came during Atkins’ appearance at a blockchain and digital assets conference jointly organized by Vanderbilt University and the Blockchain Association. He indicated the proposal would reach public view “shortly.”Originally unveiled by Atkins during mid-March, the proposal aims to provide cryptocurrency initiatives with greater operational flexibility prior to mandatory SEC registration.The regulatory structure addresses three fundamental categories. The initial component features a startup exemption permitting ventures to accumulate capital up to a specified threshold during a four-year window, accompanied by streamlined disclosure standards.The second element introduces a fundraising exemption enabling token issuers to raise designated amounts within twelve months while maintaining eligibility for additional registration exemptions available under federal securities regulations.The third pillar establishes an investment contract safe harbor, designed to exempt particular digital tokens from securities designation once development teams have fulfilled all commitments made to their investor base.Industry Implications of Token Classification StandardsThis past March also saw the SEC publish comprehensive token taxonomy guidelines. This represented the agency’s inaugural effort to consolidate definitive criteria within a single framework for determining when digital tokens constitute securities. Atkins emphasized that the safe harbor proposal is structured to complement these existing guidelines.According to Atkins, the SEC seeks industry input to ensure the proposal remains “workable” for market participants. He further disclosed that the commission is incorporating supplementary provisions beyond the three primary exemption categories.In parallel development, the SEC is crafting an innovation exemption designed to function as a regulatory testing environment for blockchain-native assets. This concept has encountered resistance from conventional financial sector entities, who contend that expansive exemptions might compromise investor safeguards and regulatory supervision.Competing Perspectives on Regulatory StrategyCitadel Securities has advocated for the SEC to implement traditional notice-and-comment rulemaking procedures. The Blockchain Association responded Monday, asserting that conventional rulemaking isn’t mandatory and noting the SEC’s historical reliance on exemptive frameworks.Atkins affirmed the commission possesses the legal authority to advance an exemption-based approach and promised that specific parameters governing the innovation exemption would be disclosed in the near term.Concurrently, legislative bodies are advancing comprehensive cryptocurrency legislation. Atkins highlighted the significance of congressional action, noting that regulatory agency rules remain susceptible to reversal by subsequent administrations. Unlike statutory law, agency-level regulations face greater vulnerability to future modification or elimination.The OIRA evaluation represents a mandatory component of federal rulemaking procedures. Following completion of this review phase, the proposal will appear in the Federal Register, initiating the public commentary period.The post SEC’s Crypto Safe Harbor Framework Now Under White House Review appeared first on Blockonomi.