The US Securities and Exchange Commission (SEC) is reportedly preparing to unveil its first official crypto regulation proposal this July as part of its 2026 agenda. Led by SEC Chairman Paul Atkins, the draft, known as “Regulation Crypto,” seeks to grant early-stage crypto projects conditional exemptions from securities registration, signaling a significant shift in the regulatory approach to digital assets.
Safe harbor for four years
According to the proposal, early-stage crypto ventures would be allowed to operate without registration obligations for up to four years, as long as their network infrastructure has not yet matured. Within this framework, companies could raise as much as $5 million in a single year. The regulation also includes a separate exception, allowing projects to collect up to $75 million through investment contracts linked to certain crypto assets.
Paul Atkins emphasized at the DC Blockchain Summit on March 17 that this model is specifically tailored for emerging projects. The draft stipulates that if the issuer fulfills the governance responsibilities promised to token holders, the related token may cease to be classified as a security.
Paul Atkins stressed that regulatory changes must be robust enough to avoid being easily reversed by future SEC leadership.
The draft text has not yet undergone review by the Office of Information and Regulatory Affairs (OIRA) within the White House. As part of the Office of Management and Budget, OIRA is responsible for conducting the final assessment of federal regulations before they can be published.
Mini glossary: OIRA is the oversight agency that reviews draft regulations from US federal bodies prior to publication. This review phase is considered a critical milestone in determining whether the proposal will proceed through the formal rulemaking process.
Why is July a key date?
Many of Atkins’ previous crypto-related guidelines are regarded as temporary and could be readily amended by future SEC administrations. By contrast, formalizing regulations as official rules requires lengthy processes for modification or repeal. For this reason, the July timeline is seen as a bridge from interim guidance to a lasting regulatory framework.
One factor adding time pressure comes from SEC Commissioner Hester Peirce. As head of the SEC’s Crypto Task Force and the originator of the Token Safe Harbor concept in 2020, Peirce has shaped the underlying principles of the current draft. She is expected to step down in November to take a faculty position at Regent University School of Law.
The role of Congress could be decisive
Transforming this draft into a long-term framework may ultimately depend on more than just the SEC’s regulatory actions. The CLARITY Act, which divides crypto oversight between the SEC and the Commodity Futures Trading Commission (CFTC), passed the House of Representatives on July 17, 2025, and was approved in the Senate Banking Committee by a 15 to 9 vote on May 14, 2026. To keep the bill’s chances for passage alive, legislative progress needs to occur before August 2026.
Market participants remain divided. Citadel Securities argues that an exemption-based regime could reduce market safety and weaken oversight, expressing support for the more traditional notice-and-comment approach. In contrast, the Blockchain Association points out that the SEC has previously granted similar exceptions, implying that classic rulemaking isn’t the only path forward.
The SEC’s agenda also includes separate regulatory topics for crypto exchanges and broker-dealers. The agency reportedly plans to sign a memorandum of understanding with the CFTC to streamline oversight and foster greater coordination between regulatory bodies.
