SEC Crypto Safe Harbor Proposal Advances to White House Review

U.S. Securities and Exchange Commission Chair Paul Atkins said the agency’s crypto safe harbor proposal has moved to the White House for review, marking a new step in the SEC’s effort to build rules for digital asset fundraising. Atkins made the comment on April 6 during a fireside chat at Vanderbilt’s Inaugural Digital Assets and Emerging Tech Policy Summit. The SEC also listed his appearance on its official events page.

The White House review refers to the Office of Information and Regulatory Affairs, or OIRA. That office reviews major federal rules before agencies publish them formally. In this case, the SEC’s pending item is listed as “Crypto Assets,” and the rule summary says it may include exemptions and safe harbors meant to clarify the regulatory framework for crypto assets.

Atkins had already previewed that framework in March. In a March 17 speech, he said the SEC was preparing a proposal under what he called “Regulation Crypto Assets” and expected to release it for public comment. His remarks framed the effort as part of a broader attempt to define when crypto fundraising falls under securities law and when it may qualify for relief.

Atkins outlines exemptions for crypto fundraising

Atkins’ March speech described three main parts of the proposal. First, he discussed a startup exemption that could give early stage crypto projects a limited registration exemption for up to four years. Second, he described a fundraising exemption that could allow issuers to raise more capital with required disclosures and financial statements. Third, he proposed an investment contract safe harbor.

That safe harbor would focus on a key legal question in crypto markets. It would aim to clarify when a digital asset is no longer tied to the managerial efforts that made its original sale an investment contract. In other words, the SEC is trying to define when a token may stop being treated as part of a securities transaction under federal law.

For now, the proposal is not final. OIRA review usually comes before a formal proposed rule is published for public comment. So while Atkins said the safe harbor has reached the White House review stage, the market is still waiting for the full text, exact terms, and official comment process.