Securities and Exchange Commission Chair Paul Atkins has confirmed that a significant crypto market regulatory proposal is currently under White House review. Speaking at the Digital Assets and Emerging Technology Policy Summit on Monday, Atkins disclosed that the Regulation Crypto Assets proposal, which the SEC outlined in mid-March, has been submitted to the Office of Information and Regulatory Affairs. The submission marks a key procedural step before the proposal can be formally published for public consideration.
Atkins stated that the proposal is at OIRA now, describing it as the next step before publication. He emphasized that the SEC is eager to hear from the marketplace to ensure the overall package is workable. While he did not elaborate extensively on specifics, he noted that the agency is incorporating several measures alongside crypto safe harbors and exemptive relief.
Regulation Crypto Assets is built around three central components: a startup exemption, a fundraising exemption, and an investment contract safe harbor for issuers. Each element is designed to address different aspects of how crypto projects interact with existing securities regulations. Together, they aim to provide clearer boundaries for industry participants operating in the United States.
The startup exemption would allow projects to raise up to a defined amount over a four-year period, subject to softer disclosure requirements than those currently in place. The fundraising exemption, meanwhile, would permit issuers to raise a defined amount within a 12-month window while retaining the ability to rely on other exemptions from registration under federal securities laws. Both provisions are intended to reduce regulatory burdens on early-stage crypto ventures.
The investment contract safe harbor component would shield certain assets from being classified as a security once the project team has ceased all managerial efforts that were represented or promised as part of the original investment contract. This provision could have broad implications for how digital assets are categorized and regulated over time. If adopted, it may offer greater legal certainty to token issuers and developers.
Under standard SEC procedure, the agency first votes to approve a formal proposal before it is sent to OIRA for review. Once OIRA completes its assessment, the proposal is published in the Federal Register and opened for public comment. Should Regulation Crypto Assets ultimately become official rules, observers note it could encourage greater crypto innovation domestically while delivering the regulatory clarity the industry has long sought.
Originally reported by CoinTelegraph.
