What to know:
- SEC plans to release Regulation Crypto for public comment in July 2026, launching formal crypto rulemaking.
- Proposal offers safe harbor protections for DeFi, tokenized securities, and qualifying blockchain financial activities.
- Startups under $5 million valuation may qualify, with fundraising limits reaching $75 million under proposed exemptions.
The U.S. Securities and Exchange Commission (SEC) is preparing to publish its long-awaited crypto safe harbor proposal for public comment as early as this month, according to its updated 2026 rulemaking agenda. The proposal, known as Regulation Crypto, seeks to establish a formal crypto regulatory framework providing exemptions and legal protection for some blockchain financial activities across the country.
According to the latest 2026 SEC rulemaking agenda update, the crypto safe harbor proposal is included in the July 2026 schedule of rulemakings of the U.S. Securities and Exchange Commission. The addition indicates that the commission is ready to initiate the official regulatory process. After the publication, the proposal will enter the public comment period before being revised and voted on by the commissioners.
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SEC Advances Crypto Safe Harbor Proposal Through Formal Rulemaking
The proposal represents the first major crypto-specific rulemaking initiative under SEC Chair Paul Atkins, marking a notable shift from reliance on enforcement actions and interpretive guidance. Compared to previous chairmen, Atkins shows much readiness to adopt regulations that would provide legal clarity to encourage innovation and preserve the protection of investors.
The Crypto Safe Harbor Proposal is still under review by the White House Office of Information and Regulatory Affairs before its publication. In his previous statements, Atkins claimed:
To deliver on President Trump’s goal to ensure that the United States is the crypto capital of the world, we are embracing innovation to bring more products onshore, creating clear rules of the road for capital raising with crypto assets, and providing clarity as to how market participants can custody and facilitate trading of tokenized securities onchain.
Crypto Safe Harbor Proposal Targets DeFi and Tokenized Assets
A central feature of Regulation Crypto is the creation of safe harbors protecting qualifying crypto activities from SEC enforcement under specified conditions. As part of the crypto regulation, the proposal targets DeFi and tokenized assets, admitting the incompatibility of traditional securities registration with decentralized blockchain protocols and automated smart contract systems.
Additionally, the proposal introduces eligibility criteria aimed at early-stage blockchain projects. Companies with a valuation under $5 million within the first four years of their operation might qualify for safe harbor protections, while entrepreneurs will be able to raise up to $75 million through crypto asset-related investment contracts.
If adopted following the public comment period, the crypto safe harbor proposal may completely change the landscape of blockchain businesses’ operation in the country by bringing in regulatory clarity that was missing until now.
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