The proposal includes a startup exemption, a fundraising exemption and an investment contract safe harbor for issuers.
US Securities and Exchange Commission Chair Paul Atkins has revealed that a key crypto market safe harbor proposal has landed at the White House for review.
Speaking at the Digital Assets and Emerging Technology Policy Summit on Monday, Atkins said the Regulation Crypto Assets proposal — outlined by the SEC in mid-March — has now been submitted to the Office of Information and Regulatory Affairs.
“We will have reg crypto that we will be proposing here shortly. It’s in fact at OIRA right now, which is the next step before being published,” he said.
Regulation Crypto Assets covers three main ideas: a startup exemption, a fundraising exemption and an investment contract safe harbor for issuers.
If the proposal does end up becoming official rules as part of the SEC’s oversight, it could drive more crypto innovation in the US while providing further regulatory clarity for the industry.
Atkins emphasized that the SEC wants to “hear from the marketplace” to make the whole package “workable.” He did not go into many specifics but said there were a few things the SEC is “building into it” alongside measures such as crypto safe harbors and exemptive relief.
SEC proposal is taking shape
Generally, the SEC first votes to approve a formal proposal, which is then sent to OIRA for review. OIRA then completes the review and it is published in the Federal Register and put up for public feedback.
Cointelegraph reached out to the SEC for comment on the matter.
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The startup exemption would enable projects to raise up to a defined amount over a four-year period with softer disclosure requirements, while the fundraising exemption would enable issuers to raise a defined amount over 12 months while “retaining the ability to rely on other exemptions from registration under the federal securities laws.”
The investment contract safe harbor would protect certain assets from the definition of a security once the project team has ceased all of its managerial efforts “represented or promised” as part of the investment contract.