SEC Chair Paul Atkins announced a comprehensive regulatory framework for crypto assets during the DC Blockchain Summit in Washington on Tuesday. The framework aims to clarify which crypto assets qualify as securities and offers clearer compliance paths through token classification, a safe harbor, and new fundraising exemptions.
Token Classification Framework: Defining Non-Securities
Atkins outlined the SEC's plan to implement a token classification and investment contract interpretation framework. This will explicitly categorise digital commodities, digital collectibles, digital tools, and payment stablecoins compliant with the GENIUS Act as assets not deemed securities. Only tokenised traditional securities would remain under securities law.
He stressed that even if an asset itself is not a security, its issuance and sale could still constitute an investment contract subject to federal securities laws. However, the new framework will allow such assets to exit securities law once the issuer has completed or permanently ceased its key managerial efforts. Atkins emphasised the need for clear and unambiguous disclosure of promises and managerial commitments to investors.
Safe Harbor: Four-Year Exemption with $5 Million Cap
Atkins announced that the SEC will release proposed rules for public comment in the coming weeks. A central element is a safe harbor for investment contracts involving specific crypto assets, granting a time-limited registration exemption of up to four years. Under the proposal, developers can mature their projects within this period, raising up to $5 million, while filing a notice with the SEC and complying with exit reporting requirements.
Fundraising Exemption: Up to $75 Million in 12 Months
Another key proposal is a new offering exemption allowing eligible issuers to raise up to $75 million in 12 months, while retaining flexibility to use other securities law exemptions. Issuers would need to file disclosure documents including principle-based disclosures, financial condition statements, and financial statements.
Atkins further stated that the exemption would remove certain crypto assets from the definition of 'security' once the issuer has completed its core managerial commitments, offering legal certainty for issuers, trading platforms, and investors.
The proposal signals a significant institutional shift in SEC policy toward the digital asset industry. Atkins specifically credited SEC Commissioner Hester Peirce, noting that the regulatory blueprint builds on her 2020 'Token Safe Harbor' proposal, reflecting the growing influence of pro-clear regulation advocates within the SEC.