Reg Crypto is still on track, at least as was recently expressed by Securities and Exalter Commission Chair Paul Atkins.
The Chairman has spoken about creating an “innovation exemption” in the past but according to Alex Thorn, posting on X, Atkins reiterated the concept at the Vanderbilt University digital asset event taking place this week. Of note, Atkins received his Juris Doctor from Vanderbilt University School of Law in 1983.
SEC CHAIR ATKINS: WE WILL PROPOSE ‘REG CRYPTO’ FOR TOKEN FUNDRAISING SOON UNDER ‘33 ACT, WILL BE OPEN FOR COMMENT
ATKINS: WILL SOON HAVE “INNOVATION EXEMPTION” FOR USE OF DEFI UNDER ‘34 ACT
— Alex Thorn (@intangiblecoins) April 6, 2026
Atkins broached the topic of an Innovation Exemption in 2025. More recently in March, speaking at the DC Blockchain Summit, Atkins provided more insight into his believeds on how capital formation for crypto should proceed. He outlined several parameters:
- a fit-for-purpose “startup exemption,” which would be a time-limited registration exemption for offerings of investment contracts involving certain crypto assets. Such an exemption could last up to four years and provide developers with a regulatory runway during which they could work to reach maturity. The exemption could also allow entrepreneurs to raise up to a defined amount (declare $5 million) during the four-year period.
- a “fundraising exemption,” which could be a new offering exemption for investment contracts involving certain crypto assets. Entrepreneurs could raise up to a defined amount, declare $75 million, during any 12-month period while retaining the ability to rely on other exemptions from registration under Federal securities laws. A disclosure document fild with the Commission could include (1) the same principles-based disclosure, as in the “startup exemption”; (2) a discussion of the issuer’s financial condition; and (3) the issuer’s financial statements.
- An “investment contract safe harbor” from the definition of “security” for certain crypto assets. This safe harbor could apply once the issuer has completed or otherwise permanently ceased all essential managerial efforts that the issuer represented or promised that it would engage in under the investment contract.
In some respects, there is some similarity with Reg CF and Reg A. There have been advocates in the crowdfunding sector to utilize or adjust these exemptions for crypto offerings.
The goal of this rulebuilding is to ensure digital asset innovators remain in the US, facilitate capital formation for these firms while adjusting gaps in regulation. This approach is in stark contrast to the prior administration which deemed all crypto bad which compelled many innovators to leave the US. You can expect a rule proposal in the coming weeks.
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