The US SEC Chairman proposes a crypto regulatory safe harbor plan, covering three exemption paths including startups and financing.

PANews, March 18 — According to the official website of the US SEC, Paul Atkins, Chairman of the US Securities and Exchange Commission, announced a new cryptocurrency guideline at the DC Blockchain Summit and also proposed the concept of a regulatory safe harbor for crypto assets, which includes three exemption paths: 1. Startup exemption: valid for up to four years, allowing projects to have a regulatory buffer period before reaching maturity, with a fundraising cap of $5 million within four years, and requiring submission of principle-based disclosure information. 2. Financing exemption: allows fundraising of up to $75 million within 12 months, requiring submission to the SEC of disclosure documents including principle-based disclosure, financial condition, and financial statements. 3. Investment contract safe harbor: when the issuer completes or permanently ceases the core managerial efforts under the investment contract, the relevant crypto assets may be exempted from the definition of securities. Atkins stated that this framework draws on recent Congressional work, especially the CLARITY Act, and is expected to release proposed rules for public comment in the coming weeks.