SEC Chair Paul Atkins said the agency should consider a crypto safe harbor that would give some token projects and crypto firms room to raise money under tailored exemptions. He presented the idea on March 17, 2026, at the DC Blockchain Summit in Washington, D.C. Atkins said the plan could create “bespoke pathways” for crypto firms while still keeping investor protections in place.
Atkins said the proposal has three parts. They are a startup exemption, a fundraising exemption, and an investment contract safe harbor. He also said the SEC could publish proposed rules for public comment in the coming weeks.
The speech came the same day the SEC and CFTC issued new guidance on how federal securities laws apply to crypto assets. That broader move gave more context to Atkins’ remarks and showed the agency is trying to define clearer crypto rules.
SEC Crypto Safe Harbor Starts With a Startup Exemption
Atkins said the first part of the SEC crypto safe harbor would be a startup exemption. This would let some crypto firms raise a limited amount of money or operate for a period of time before facing full securities registration rules. He said the aim is to give projects enough regulatory runway to develop before they reach maturity.
According to Atkins’ remarks, this startup exemption could last for up to four years. During that period, a project could raise up to $5 million. The issuer could also be required to notify the SEC when it starts using the exemption and when it stops relying on it.
Atkins also said projects using the exemption could provide principles based disclosures instead of going through the full registration process. Those disclosures could cover both the investment contract and the underlying crypto asset. In simple terms, the SEC is considering a lighter path for early stage token projects that still gives the market basic information.
Crypto Fundraising Exemption Would Cover Larger Token Raises
The second part of Atkins’ plan is a crypto fundraising exemption. He said this would allow investment contracts involving certain crypto assets to raise up to $75 million in any 12 month period without standard registration under securities laws.
This part matters because Atkins attached clear numbers to the proposal. He did not speak only in broad terms. He described a route that would let eligible crypto issuers raise a much larger amount than the startup track. At the same time, they would still need to file disclosure documents with the SEC.
Those documents could include the same core disclosures required under the startup route. In addition, issuers could need to explain their financial condition and provide financial statements. So while the crypto fundraising exemption would reduce some regulatory burden, it would not remove disclosure duties.
Investment Contract Safe Harbor Targets SEC Token Rules
The third part is the investment contract safe harbor. Atkins said this measure could give issuers and buyers more certainty about when a crypto asset is, or is no longer, subject to federal securities laws. This point goes to the center of the long running debate over SEC token rules.
Atkins said the safe harbor could apply once an issuer has “permanently ceased all essential managerial efforts” promised for the asset. In simple terms, that means the legal treatment of a token may change after the promoter is no longer doing the core work that supported the original deal.
He also said,
“It is past time for us to stop diagnosing the problem and start delivering the solution.”
Still, Atkins added that only Congress can fully future proof this area through broader market structure legislation. So the SEC may move first with exemptions, but a larger crypto law would still depend on Congress.
Crypto Regulation Shift Comes With Broader SEC and CFTC Guidance
Alongside Atkins’ speech, the SEC and CFTC released an interpretation on how securities laws apply to crypto assets. The agencies said the framework addresses issues such as airdrops, protocol mining, protocol staking, and how a non security crypto asset can become subject to, and later stop being subject to, an investment contract.
That matters because the new guidance does not stand alone from the safe harbor idea. Both moves point in the same direction. The agencies are trying to draw clearer lines between crypto assets that fall under securities law and those that do not.
For now, the main fact is clear. Paul Atkins wants the SEC to consider a crypto safe harbor with three separate exemptions. The plan would cover early stage token projects, larger fundraising rounds, and the point at which some crypto assets may move outside securities treatment.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: March 18, 2026 • 🕓 Last updated: March 18, 2026
