SEC Chair Atkins Proposes Crypto Safe Harbor With Three Exemption Tiers

U.S. SEC Chair Paul Atkins unveiled a crypto regulatory safe harbor framework with three exemption options at the DC Blockchain Summit, the SEC website shows. The Startup Exemption offers early-stage projects up to four years of regulatory relief, capping fundraising at $5 million with principle-based disclosures required. The Financing Exemption permits up to $75 million to be raised within 12 months, requiring issuers to file disclosure documents covering financial condition and statements. Under the Investment Contract Safe Harbor, crypto assets linked to an investment contract may fall outside the security definition once the issuer completes or permanently halts all core managerial efforts, with Atkins noting the framework draws on recent congressional work including the CLARITY Act and proposed rules expected to open for public comment in coming weeks.