SEC’s Atkins Reveals ‘Reg Crypto’ Proposal Nears Public Comment

At a recent policy summit in Nashville, SEC Chair Paul Atkins announced that a significant regulatory proposal concerning cryptocurrency is in its final stages before being made public. This proposal, known as ‘Reg Crypto,’ is currently under evaluation by the White House and is anticipated to be available for public remark soon.

During a discussion at the Digital Assets and Emerging Technology Policy Summit, Atkins revealed that the proposal aims to introduce three safe-harbor exemptions for early-stage startups. These exemptions would allow such entities to gather up to $5 million and issuers up to $75 million over a 12-month period.

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Atkins pointed out that this initiative is designed to foster capital growth while ensuring investor protections through specific disclosure requirements. Notably, the proposed framework classifies most crypto assets, including digital commodities and payment stablecoins, as non-securities. Only tokenized traditional securities would continue to be rigorously regulated under existing laws.

The SEC Chair had first introduced this regulatory framework on March 17, 2026, highlighting a more permissive and clearer approach towards crypto assets in his speech, “Regulation Crypto Assets: A Token Safe Harbor.”

One feature of the startup exemption includes a temporary registration exemption lasting up to four years for nascent crypto projects, enabling them to raise the stipulated funds as their networks evolve. They would need to adhere to principles-based disclosures and notify the SEC accordingly.

Additionally, the fundraising exemption allows issuers to accumulate up to $75 million annually, provided they submit a disclosure document that outlines their financial condition and other relevant statements.

An investment contract exemption would also be available, providing a guideline for crypto assets to escape securities law categorization once issuers have stopped all managerial activities promised to their investors.

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<pAtkins also commented on the decision to dismantle the SEC's innovation hub, a controversial move that came in the wake of former Chairman Gary Gensler's tenure. He mentioned that the hub had amassed a reputation that left industry participants apprehensive about potential legal repercussions. This highlighted the shift in the SEC's culture as Atkins emphasized a more constructive relationship with the crypto industry moving forward.

In his remarks, he contrasted the current regulatory climate with that under Gensler, indicating a recognition of the need for a better approach to cryptocurrency regulation. Despite initial resistance expected from SEC staff, Atkins noted their positive reception to the new administration’s direction.

As the SEC prepares to finalize the proposed rule text, Atkins has urged the crypto community to engage with the upcoming 2026 midterm elections and support candidates who advocate for innovation-friendly regulatory policies.

Although the formal rule text remains pending, Atkins’ previous speeches and comments have been the most insightful public indicators of what the proposal entails. Once the White House review concludes, the SEC will share the full draft for public input, setting the stage for a potentially transformative regulatory landscape for the cryptocurrency sector.