SEC crypto safe harbor heads to White House review, proposal due ‘shortly’ says Atkins

A proposed safe harbor framework from the U.S. Securities and Exchange Commission (SEC) that would allow crypto projects to launch without immediate registration has been sent to the White House for review. SEC Chair Paul Atkins announced that the proposal, introduced last month, is now with the Office of Information and Regulatory Affairs (OIRA) for review before publication. Atkins indicated that the regulatory proposal, which includes a "startup exemption" for capital raising with investor protections and an "investment contract safe harbor" complementing existing token taxonomy guidance, is expected "shortly."

This regulatory effort by the SEC aims to provide more permanent guidelines for the crypto industry, contrasting with agency rulemaking which can be more susceptible to administrative changes. Atkins emphasized the need for "something chiseled in stone" that legislation can provide. The SEC is also developing an innovation exemption, intended as a regulatory sandbox for onchain assets, which has drawn debate from traditional finance institutions concerned about investor protection and market surveillance, while crypto advocates argue the SEC has the authority to issue such exemptions.

(Source：The Block)