The Chair of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, stated on Tuesday that the SEC is pushing for a new regulatory framework for digital assets. The goal is to resolve years of debate over which crypto assets qualify as securities and to provide clearer compliance pathways for crypto companies in the U.S. through token classification, investment contract interpretation, and “safe harbor” arrangements.
During his speech at the “DC Blockchain Summit” in Washington on Tuesday, Atkins pointed out that the SEC is implementing a framework for token classification and investment contract interpretation, explicitly listing digital commodities, digital collectibles, digital tools, and payment stablecoins that meet the GENIUS Act as assets not considered securities. In contrast, traditional securities that are tokenized will still be primarily regulated under securities laws.
SEC Clarifies Core Issue: When Do Tokens No Longer Fall Under Securities Laws?
Atkins explained that even if a crypto asset itself is not classified as a security, its issuance and sale methods could constitute an investment contract, thus falling under federal securities law. However, the new framework will further clarify that once the issuer has completed or permanently ceased its key management commitments, the related crypto assets may be exempt from securities law restrictions.
He emphasized that the SEC’s new interpretation will require project teams to clearly disclose their commitments and statements to investors, and that these management efforts relied upon by investors must be “explicit and unambiguous.” This indicates a shift in regulatory focus toward the promises, disclosures, and management responsibilities during the issuance process, rather than solely judging based on the asset’s form.
Emerging “Safe Harbor” Proposals: Potential Exemptions for Startup Fundraising and Token Issuance
In terms of specific system design, Atkins previewed that the SEC plans to release proposed rules for public comment within the coming weeks, centered around three main mechanisms.
First is the “Startup Exemption.” According to Atkins, this would be a time-limited registration exemption applicable to the issuance of investment contracts involving certain crypto assets, potentially lasting up to four years, allowing developers to advance their projects during this period. The exemption might also permit projects to raise up to approximately $5 million within four years, with the requirement to notify the SEC and complete filings upon exiting the exemption.
Second is the “Fundraising Exemption.” Atkins suggested that the SEC could consider establishing a new issuance exemption allowing qualified issuers to raise up to about $75 million within 12 months, while maintaining flexibility to use other securities law exemptions. Under this proposal, issuers would need to submit disclosure documents to the SEC, including general disclosures, financial condition explanations, and financial statements.
Third, and most closely watched by the market, is the “Investment Contract Safe Harbor.” Atkins indicated that this arrangement would allow certain crypto assets to no longer be classified as securities once the issuer has completed its prior core management commitments, providing more rule-based legal certainty for issuers, trading platforms, and investors.
SEC Shifts Toward Institutionalization, Sending a More Friendly Signal to the Industry
Atkins’ proposal of a safe harbor makes it easier for crypto companies to sell tokens and raise funds, signaling a further institutionalization of the SEC’s stance toward the digital asset industry.
Compared to the regulatory environment in the U.S. over the past few years, this statement clearly indicates a policy shift. Atkins explicitly stated during his speech that market participants have lacked clear guidance for over a decade, and the SEC’s previous failure to provide definitive answers to key questions will now come to an end.
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