U.S. Securities and Exchange Commission Chairman Paul Atkins says the agency should consider a “safe harbor proposal” to give crypto companies and some tokens a regulatory bypass.
Atkins he said in remarks made Tuesday at a crypto lobby event in Washington, D.C., that his safe and sound harbor proposal consisted of a “startup exception,” a “fundraising exception,” and an “investment treaty safe harbor.”
“It is time for us to stop diagnosing the problem and start providing a solution,” he said. “Such a safe harbor would provide cryptocurrency innovators with tailored pathways to raise capital in the U.S. while ensuring adequate investor protection.”
The SEC, along with the Commodity Futures Trading Commission, also issued an interpretation on Tuesday that clarified what types of cryptocurrencies are securities and how “non-security crypto assets” may be subject to securities laws.
Our interpretation of crypto assets – based on current law and based on extensive public input – confirms what the previous administration was unwilling to acknowledge…
Most crypto assets are not securities themselves.pic.twitter.com/fbHan0vmmb
— Paul Atkins (@SECPaulSAtkins) March 17, 2026
Atkins presents an idea for exemptions from cryptocurrencies
In his remarks, Atkins said the SEC should consider a “startup exception” to allow crypto companies to raise a certain amount of money or operate for several years with enough “runway” to reach maturity.
It also introduced a “fundraising exemption” to allow investment contracts involving cryptocurrencies to raise up to a certain amount in any 12-month period, while being exempt from registration under securities laws.
Atkins said his idea for a “safe harbor for investment treaties” would give issuers and purchasers of crypto assets certainty about when assets are subject to securities laws.
Atkins said the safe and sound harbor could apply when an issuer “permanently ceases any necessary management actions” it has promised in respect of an asset.
Related: DeFi Lobby Drops Lawsuit Against SEC, Citing Crypto Shift
Atkins added that he expects the SEC to release proposed rules on the exemptions for public comment in the coming weeks.
But he added that “only Congress can ensure that regulation in this area is future-proofed through comprehensive market structure legislation.”
A bill defining the SEC’s cryptographic powers is currently stuck in the Senate as negotiations on its provisions continue.
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