SEC Chair Paul Atkins Proposes Safe-Harbor Exemptions for Crypto Companies

The U.S. Securities and Exchange Commission has long applied securities laws to crypto-asset issuance and fundraising, leaving development teams uncertain about whether tokens qualify as securities and must be registered. The proposed “Regulation Crypto” would provide a temporary registration exemption, reducing compliance costs for startups and signaling a shift in the SEC's regulatory approach toward supporting industry growth.

The SEC is expected to propose its first major crypto rule as soon as July 2026, with a safe harbor for crypto developers, startups and fundraising activities at its core. The proposal would ease registration requirements and barriers to raising capital. The duration of the exemption, eligibility conditions and fundraising cap have not been disclosed. The measure would still be subject to public consultation and a formal rulemaking process.

Tokenized securities use blockchain-based tokens to represent traditional assets such as stocks. The technology could enable round-the-clock trading and more efficient settlement, but holders’ access to dividends, voting rights and asset protections still depends on the legal framework and market infrastructure. The US Securities and Exchange Commission’s current framework dates to the 1930s, making permanent rules from Congress crucial to industry investment and investor protection.

A June 15, 2026, report said SEC Chair Paul Atkins was using the agency’s existing exemptive authority to develop a temporary framework allowing companies to trade tokenized stocks. The proposal has yet to disclose the amounts involved or a formal effective date. SEC Commissioner Hester Peirce confirmed that the agency has broad exemptive authority, but legal experts cautioned that comprehensive legislation typically takes 12–18 months. Questions surrounding third-party issuance, buyer identification, dividends and voting rights remain unresolved.

Under Gary Gensler, the US Securities and Exchange Commission sought to define crypto-asset rules through enforcement, bringing 95 accounting and recordkeeping cases and imposing $2.3 billion in penalties. After taking office as chair on April 21, 2025, Paul Atkins criticized that approach for misreading securities law and stifling innovation. The regulatory shift could determine whether exchanges, token issuers and institutional capital remain in the United States.

On April 7, 2026, the SEC acknowledged that some of its previous crypto enforcement actions were “flawed” and said it had dismissed seven cases since February 2025, including those involving Coinbase, Binance and Kraken. Earlier, on February 24, the SEC granted WisdomTree exemptive relief allowing WTGXX to offer 24/7 trading and instant settlement using USDC. The company had about $160.8 billion in global assets under management at the time.

The U.S. Securities and Exchange Commission sued crypto company Unicoin, CEO Alexander Konanykhin and others in May 2025. The agency alleged that they raised $100 million while misleading investors by claiming the company's tokens were backed by real estate assets. Unicoin has denied the allegations and said the case perpetuates former SEC Chair Gary Gensler's aggressive enforcement approach.

Industry group The Digital Chamber will hold the DC Blockchain Summit in Washington on March 17–18, 2026. Unicoin is the event's top-tier “Platinum Sponsor,” while SEC Chair Paul Atkins and Commissioner Hester Peirce are listed as featured speakers. The sponsorship amount has not been disclosed, and the SEC declined to comment on the arrangement that will bring the two sides together while they are engaged in litigation.