Crypto Safe Harbour Proposal Advances Toward Approval as SEC Indicates Regulatory Change

The U.S. Securities and Exchange Commission (SEC) is on the brink of officially releasing a proposed framework aimed at providing a “safe harbour” for the cryptocurrency sector. SEC Chair Paul Atkins recently announced that the proposal has reached the Office of Information and Regulatory Affairs (OIRA), marking the final stage of White House review before it can be published.

This proposal is significant as it would represent the first official guidance from U.S. regulators on enabling cryptocurrency start-ups to secure funding without needing to undertake full securities registration while their platforms are still being developed. Atkins has indicated that the publication of the framework is expected soon.

Three Pathways for Crypto Startups

The proposed framework outlines three primary pathways designed to alleviate regulatory burdens for crypto projects prior to their decentralisation, at which point their tokens might not be classified as securities:

1. Startup Exemption: This first pathway allows early-stage cryptocurrency projects to raise up to approximately US$5 million (around AU$7.25 million) over four years without registering with the SEC, provided they adhere to certain disclosure requirements intended to safeguard investors.

2. Larger Fundraising Exemption: The second pathway permits larger fundraising efforts—up to about US$75 million (approximately AU$108.75 million) annually—subject to stricter disclosure standards.

3. Investment Contract Safe Harbour: The third pathway introduces a clearer definition regarding when a digital asset transitions out of security status as the network develops and original issuer control diminishes.

SEC and CFTC Guidance

It is important to note that all three proposed measures are still in the proposal stage and would need to undergo formal rule-making processes.

This framework is built upon previously issued interpretative guidance from both the SEC and the Commodity Futures Trading Commission (CFTC) on 17 March 2026. That guidance superseded the SEC’s 2019 FinHub framework and categorised four distinct types of crypto assets that do not qualify as securities: digital commodities, digital collectibles, digital tools, and payment stablecoins.

Furthermore, this guidance clarified that trades in secondary markets do not inherently maintain the securities classification that may have applied during an initial issuance. It also specified that several common cryptocurrency practices—such as mining, staking, issuing staking receipts, wrapped asset issuance, and qualified airdrops—do not constitute securities offerings.

Conclusion

The proposed crypto safe harbour framework represents a potentially transformative development for the cryptocurrency landscape in the United States, aiming to foster innovation while still incorporating investor protections. As the SEC and CFTC continue to refine their regulatory stance, the implications for startups in this space could be significant, paving the way for easier capital acquisition and clearer operational guidelines in the evolving crypto market.

This initiative demonstrates a progressive approach towards regulating digital assets, balancing the need for discouraging fraudulent activities against the imperative to encourage growth and development within the burgeoning crypto industry.