PANews reported on April 7 that SEC Chairman Paul Atkins stated that a proposal for a "safe harbor" framework aimed at providing launch exemptions for crypto projects has been submitted to the White House Office of Management and Budget (OIRA) for review, which is the final step before its official release.

The proposal includes a “startup exemption” that would allow stakeholders in the crypto industry to raise a certain amount of funding over four years, while providing specific disclosures. Additionally, Atkins has proposed a “safe harbor for investment contracts” to be combined with the SEC’s interpretative guidance on token-based classification issued in March of this year.

Atkins points out that legislation is necessary because it provides a more robust and enduring regulatory framework than institutional rulemaking. Furthermore, the SEC is also exploring an "innovation exemption" as a regulatory sandbox for on-chain assets. This proposal has sparked extensive discussion between crypto proponents and traditional financial institutions over the past year. Atkins states that the SEC has the authority to advance the innovation exemption and will release relevant parameters soon. He believes there is still much work to be done in this area.