SEC Chair Paul Atkins said Monday that a new “Reg Crypto” framework for token fundraising is sitting at the White House for final review before publication. Speaking at Vanderbilt University’s Digital Assets and Emerging Technology Policy Summit, Atkins told the audience the proposal is currently before the Office of Information and Regulatory Affairs — one procedural step from going live for public comment. The framework would create three pathways for crypto projects to raise capital under federal securities law without the burden of full registration.
A safe harbor is a legal provision that shields a company from regulatory liability when it satisfies a defined set of conditions — in this context, it gives token issuers a structured route to fundraise without being treated as selling unregistered securities.
Key takeaways
- The SEC’s “Reg Crypto” proposal is under White House OIRA review and expected to open for public comment shortly.
- Early-stage crypto projects would be allowed to raise up to $5 million under a startup exemption lasting up to four years.
- More established projects could raise up to $75 million in a 12-month window under a separate fundraising exemption.
- A safe harbor mechanism would let tokens formally graduate out of securities classification as their networks decentralize.
Published: April 7, 2026 — 12:00 UTC
Why this matters now
For years, crypto fundraising existed in regulatory gray area. The SEC’s default posture was enforcement: projects that sold tokens to U.S. investors risked being charged with offering unregistered securities. That deterred legitimate startups and pushed many offshore.
The “Reg Crypto” announcement represents a formal pivot. Rather than case-by-case enforcement, the agency is now building a rules-based framework that explicitly addresses how token sales fit under the Securities Act of 1933. Atkins framed the shift clearly at Vanderbilt: the SEC needs “statutory backing to ensure regulatory durability.”
This follows the SEC and CFTC’s joint interpretive release on March 17, 2026, which established a five-category taxonomy for crypto assets: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. That taxonomy determines which assets are subject to securities law at all — Reg Crypto determines how those that qualify can fundraise legally.
What the three pathways actually allow
The framework has three distinct components. The startup exemption targets early-stage projects: a time-limited registration exemption lasting up to four years, capped at $5 million per project. Disclosures follow a principles-based whitepaper model rather than formal prospectus requirements. Atkins confirmed projects using this exemption retain access to existing options like Regulation D and Regulation S, so it is additive, not exclusive.
The fundraising exemption addresses more developed projects. It allows issuers to raise up to $75 million within a 12-month period, subject to structured disclosure requirements including financial documentation. This pathway resembles existing Regulation A+ mechanics but is tailored to how token economics work in practice.
The safe harbor mechanism handles what happens after fundraising: a defined process for issuers to signal when their token no longer qualifies as a security. As a network becomes more decentralized and its token’s value no longer depends on the efforts of a core team, the token can formally transition out of securities classification. That graduation pathway has been a longstanding industry request and directly tracks the Howey test logic that courts have applied to crypto cases.
Separately, Atkins signaled the SEC will introduce a DeFi-focused “innovation exemption” under the Securities Exchange Act of 1934, targeting decentralized protocol operations specifically, not just token sales.
The regulatory coordination piece
The Reg Crypto announcement landed alongside an SEC-CFTC memorandum of understanding to harmonize crypto oversight and reduce duplication between the two agencies. That coordination matters: without it, a token could theoretically fall under both agencies’ jurisdiction at different life stages, creating compliance conflicts.
The proposal also aligns with Section 103 of the Senate’s CLARITY Act, a legislative vehicle for crypto market structure reform. Atkins’ remarks suggest the SEC would prefer to move through rulemaking now rather than wait on Congress, though he acknowledged statutory backing would make the framework more durable over time.
Once the White House OIRA review is complete, the SEC will open the proposal for public comment. That comment period typically runs 60 to 90 days, meaning a finalized rule is unlikely before late 2026 at the earliest.
Frequently asked questions
What is the SEC’s “Reg Crypto” proposal?
Reg Crypto is a forthcoming SEC rulemaking that would create three pathways for crypto token fundraising: a startup exemption capped at $5 million, a fundraising exemption capped at $75 million per year, and a safe harbor letting tokens formally graduate out of securities law as their networks decentralize. It covers fundraising under the Securities Act of 1933.
When will Reg Crypto take effect?
The proposal is currently under White House OIRA review. After that review clears, the SEC will publish it for public comment, a process that typically runs 60 to 90 days. A final rule is unlikely before late 2026.
How does this connect to the SEC-CFTC joint taxonomy from March?
The March 17 joint release established which crypto assets qualify as securities, using a five-category taxonomy. Reg Crypto addresses the next question: for assets that do qualify, how can their issuers fundraise legally without triggering full registration requirements?
