The US SEC’s crypto safe harbor proposal, also known as Regulation Crypto Assets (Reg Crypto), is now under review by the Office of Information and Regulatory Affairs (OIRA), said Chair Paul Atkins during a Monday fireside chat at the inaugural Digital Assets and Emerging Technology Policy Summit hosted by Vanderbilt University and the Blockchain Association.
First proposed last month, the framework would introduce a startup exemption for early projects, a fundraising exemption with structured reporting, and a safe harbor mechanism to signal when assets are no longer subject to securities laws.
Atkins said that the SEC will soon propose a “Reg Crypto” framework for token fundraising under the 1933 Act and open it for public comment. He also noted that a DeFi-focused “innovation exemption” under the Securities Exchange Act of 1934 will be introduced.
“Reg Crypto” corresponds to a capital-raising exemption outlined in Section 103 of the Senate’s CLARITY Act, according to reporter Eleanor Terrett. The provision would enable crypto ventures to secure funding, distribute tokens, and move toward decentralization in a structured disclosure framework and defined fundraising cap.
The effort comes amid ongoing but slow-moving legislative attempts in Washington to regulate the crypto industry. Atkins stressed the need for statutory backing to ensure regulatory durability.
The SEC and CFTC recently unveiled a Memorandum of Understanding to harmonize agency oversight and modernize US financial regulations.
The MOU focuses on minimizing regulatory duplication, clarifying product definitions, and providing fit-for-purpose rules for crypto and other innovations.
The Joint Harmonization Initiative will coordinate policymaking, enforcement, and reporting across both agencies.
