SEC Chair Atkins Unveils "Regulation Crypto Assets" Framework, Defines Four Non-Security Categories and New Exemptions

SEC Chairman Paul S. Atkins announced the "Regulation Crypto Assets" framework on March 17 at the Blockchain Summit in Washington, D.C., providing interpretive guidance on token classification and investment contract rules, the SEC website shows. The guidance states that four types of crypto assets are not treated as securities: digital commodities, digital collectibles, digital tools, and payment stablecoins as defined under the GENIUS Act, while digital securities—tokenized versions of traditional securities—remain subject to securities law. The SEC also clarifies when an investment contract ends, requiring project teams to disclose core management activities, after which the related crypto assets are no longer subject to securities regulations. Atkins outlined three proposed exemption paths: a "Startup Exemption" for up to $5 million raised over four years, a "Funding Exemption" for up to $75 million within 12 months with SEC disclosure filings, and an "Investment Contract Safe Harbor" that sets criteria for qualifying assets to be treated as nonsecurities, and said the SEC plans to seek public comment on these proposals.