SEC Chair Confirms Crypto Startup Exemption Rule Is at OIRA Awaiting Sign-Off
Paul Atkins made the statement during a fireside chat at the inaugural Digital Assets and Emerging Technology Policy Summit, hosted by Vanderbilt University and the Blockchain Association at Vanderbilt’s Owen Graduate School of Management on Monday.
The proposal, referred to internally as “Reg Crypto” or “Regulation Crypto Assets,” is currently under review at the White House Office of Information and Regulatory Affairs. Atkins said publication for public comment is expected shortly once that review is complete.
Atkins first outlined the framework on March 17, 2026, in remarks at the DC Blockchain Summit titled “Regulation Crypto Assets: A Token Safe Harbor.” That speech introduced the SEC‘s new interpretive approach for crypto assets under federal securities laws.
Under the proposed framework, most crypto assets, including digital commodities, collectibles, tools, and payment stablecoins, would be classified as non-securities. Only tokenized traditional securities would remain fully subject to existing securities laws.
For cases where a crypto asset is offered as an investment contract under the Howey test, the proposal creates three targeted safe-harbor exemptions. Each is designed to support capital formation while preserving investor protections through disclosure requirements.
The startup exemption would give early-stage crypto projects a time-limited, non-exclusive registration exemption lasting up to four years. Projects could raise up to approximately $5 million while a network matures, provided they post principles-based disclosures publicly and file notices with the SEC.
A separate fundraising exemption would allow issuers to raise up to approximately $75 million in any 12-month period for crypto asset investment contracts. Issuers filing under this path must submit a disclosure document covering financial condition and other principles-based statements, and can still rely on other existing registration exemptions.
A third safe harbor, the investment contract exemption, provides a rule-based path for a crypto asset to exit securities-law classification once an issuer has permanently ceased all essential managerial efforts promised to investors.
Atkins also addressed the SEC’s decision to shut down its innovation hub, a move that drew attention given the agency’s stated commitment to crypto policy progress. He said the hub had developed such a toxic reputation under former Chairman Gary Gensler that industry participants told him they would visit, return home, and find a subpoena waiting at their “front stoop.”
Atkins took the moment to contrast the current environment with his predecessor’s tenure. He noted that Gensler had damaged the Commodity Futures Trading Commission (CFTC) before moving to the SEC, leaving both agencies in need of repair. He said SEC staff, whom he expected to be resistant to the new administration’s direction, have instead embraced the shift.
The chairman encouraged the crypto industry to participate in the 2026 midterm elections and support candidates who back pro-innovation regulatory policy.
The SEC has not yet released the formal proposed rule text. Atkin’s March 2026 token safe harbor speech and Monday’s comments remain the most authoritative public statements on the proposal’s contents. Once OIRA review is complete, the agency will publish the full rulemaking for public comment.
