U.S. Crypto Regulations Could Change as the SEC Prepares a Four-Year Exemption Framework
US SEC Prepares New Crypto Rules, Early-Stage Projects Could Receive Regulatory Exemptions
The US Securities and Exchange Commission (SEC) is reportedly preparing to introduce its first official crypto regulatory proposal in July as part of its 2026 agenda. Led by SEC Chairman Paul Atkins, the draft framework, known as “Regulation Crypto,” aims to provide conditional exemptions from securities registration for early-stage crypto projects, marking a significant shift in the regulator’s approach to digital assets.
Four-Year Safe Harbor
Under the proposal, early-stage crypto projects would be allowed to operate without registering their tokens as securities for up to four years, provided their blockchain network has not yet reached maturity.
During this period, companies would be permitted to raise up to US$5 million per year. The proposal also introduces a separate exemption that would allow projects to raise as much as US$75 million through investment contracts tied to certain crypto assets.
Speaking at the DC Blockchain Summit on March 17, Paul Atkins said the framework is specifically designed to support emerging crypto projects. According to the proposal, if a token issuer fulfills its governance commitments to token holders, the token may no longer be classified as a security.
Congress Will Play a Key Role
However, establishing this framework as a long-term regulatory regime will depend on more than just the SEC. The US Congress is expected to play a crucial role in determining its future.
One of the key legislative efforts is the CLARITY Act, which would divide oversight of the crypto industry between the SEC and the Commodity Futures Trading Commission (CFTC). The bill passed the US House of Representatives on July 17, 2025, and was later approved by the Senate Banking Committee in a 15-9 vote on May 14, 2026.
To keep the legislation on track, further congressional action will need to take place before August 2026.
Industry Remains Divided
The proposal has drawn mixed reactions from the crypto industry.
Citadel Securities argues that an exemption-based framework could weaken investor protection and reduce market oversight. The firm favors the traditional regulatory rulemaking process instead.
Meanwhile, the Blockchain Association contends that the SEC has previously granted similar exemptions, suggesting that formal rulemaking is not the only path to providing regulatory clarity for the crypto industry.
In addition to this proposal, the SEC’s regulatory agenda includes separate rules for crypto exchanges and broker-dealers. The agency is also reportedly planning to sign a memorandum of understanding with the CFTC to strengthen regulatory coordination and create a more integrated oversight framework for the digital asset market.
