Crypto 'Safe Harbor' Framework Under White House Review, Includes Startup Exemption Proposal

On April 7, SEC Chairman Paul Atkins announced that the proposed crypto ‘safe harbor’ framework has entered the White House review process and is currently under evaluation by OIRA, with an expected prompt release. The proposal includes a ‘startup exemption’ that allows crypto projects to raise funds for approximately four years while fulfilling information disclosure obligations, along with a safe harbor for investment contracts and interpretive guidance on token classification. Additionally, the SEC is advancing an ‘innovation exemption’ mechanism, aiming to provide a regulatory sandbox-like arrangement for on-chain assets, although there is still controversy within the industry regarding the scope of this initiative. (The Block)

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