SEC to Propose Crypto Safe Harbors as Soon as July

The U.S. Securities and Exchange Commission plans to publish long-awaited crypto rulemaking as soon as July, proposing safe harbors and exemptions that would govern the offer and sale of crypto assets and certain on-chain financial activity. The package is known inside the agency as Regulation Crypto and aims to create carve-outs for tokenized securities, decentralized finance transactions and other on-chain activity.

An updated SEC agenda lists a potential July release for the proposal, followed by a public comment period once the text is posted. Chair Paul Atkins described the package as including “certain exemptions and safe harbors” that could shield specified activities from enforcement when firms meet defined conditions.

Details Atkins has outlined previously indicate the safe harbors could cover early-stage experiments and limited token offerings. Under those parameters, startups valued up to $5 million could test crypto assets during their first four years; entrepreneurs might be allowed to raise up to $75 million using investment contract structures for certain tokens; and some tokens could be excluded from enforcement once creators cease essential managerial efforts. The SEC has not released final rule text and those figures may change in the proposal.

Congress is considering the Clarity Act, a broad bill that would legalize many crypto activities in the United States, but the measure has stalled in the Senate. Backers say if the Clarity Act does not advance by August, it is unlikely to pass before the November midterm elections. Agency officials have cited Congress’ uncertain path as a factor in the timing and content of the SEC’s plan.

The proposed rules would set formal criteria for when token offers fall under U.S. securities laws and when exemptions would apply. That framework would affect token issuers, trading platforms, custodians and decentralized finance protocols. The public comment period will allow firms, investors and advocates to propose changes before any final rule is adopted.

A recent Supreme Court decision removed prior limits on a president’s authority to fire agency commissioners, granting the president greater control over independent agencies including the SEC and the Commodity Futures Trading Commission. That ruling could influence agency leadership and enforcement priorities as the rulemaking advances.

The commission’s statement read: “To deliver on President Trump’s goal to ensure that the United States is the crypto capital of the world, we are embracing innovation to bring more products onshore, creating clear rules of the road for capital raising with crypto assets, and providing clarity as to how market participants can custody and facilitate trading of tokenized securities onchain.”

The SEC plans to publish the full proposal and open it for comment once the final text is posted on the agency’s rulemaking agenda.