The SEC has taken action. Chairman Paul Atkins announced a new regulatory framework at the Cryptocurrency Summit, which is quite a realistic approach.

The first thing that caught my attention is that this safe harbor concept reflects recent legislative developments. In particular, the influence of the CLARITY Act is evident, making it not just an idealistic notion but something that seems practically implementable.

Looking at the contents of the framework, three exemption pathways are provided. First is for startups, with a maximum of a four-year buffer period during which they can raise up to $5 million. As long as they provide basic disclosure information, the aim is to reduce regulatory burdens during the startup growth phase.

Next is the fundraising exemption. It allows for raising up to $75 million within 12 months. This is geared toward more mature projects, requiring disclosure documents that include financial conditions and statements. It balances transparency with increased flexibility in fundraising.

The third is the investment contract safe harbor, which I find the most interesting. If the issuer completes or permanently ceases core management efforts based on the investment contract, the crypto asset would no longer be classified as a security. In other words, once a project reaches a certain stage, regulatory burdens could be eased.

If this safe harbor truly works, it could bring new momentum to the US cryptocurrency market. Especially since such a concrete framework was presented at the Cryptocurrency Summit, it’s a significant signal for the industry. Regulatory guidelines are expected to be announced in the coming weeks, and market reactions will likely depend on their details.