The US Securities and Exchange Commission (SEC) has finalized a broad set of rules called Reg Crypto.
According to SEC Chairman Paul Atkins, the document has been sent for final review to the White House Office of Information and Regulatory Affairs (OIRA).
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“We’ll have reg crypto that we’ll be proposing here shortly. It’s in fact at OIRA right now, which is the next step before being published, so that’s exciting,” Atkins stated at the Digital Asset Summit at Vanderbilt University.
What Reg Crypto Contains
The proposal aims to update provisions of the Securities Act of 1933. It seeks to clearly distinguish transactions that constitute securities trading from those that do not.
Key elements of the initiative include:
- Startup exemption — simplified capital raising for startups over four years with reduced disclosure requirements.
- Fundraising exemption — ability to raise a specified amount within 12 months.
- Investment contract safe harbor — a mechanism allowing certain tokens to exit the definition of a security after the team’s active development concludes.
Additionally, the SEC is preparing an “innovation exemption” — a regulatory sandbox. This will allow testing of new financial instruments under flexible conditions without creating unfair advantages for startups over larger players.
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Context and Next Steps
The SEC initiative runs parallel to work on the CLARITY Act. On April 2, Coinbase confirmed that market participants and lawmakers are close to a compromise on that document’s text.
Atkins emphasized that the regulator wants broad industry feedback after the proposal’s publication. The goal is to address practical difficulties developers will face.
Earlier, on March 18, the SEC issued a notice acknowledging that most crypto assets do not fall under the category of securities. This became possible after strengthening coordination with the CFTC.
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