SEC Chairman Announces Regulatory Framework for Crypto Assets, Excludes Four Categories from Securities Classification

According to the SEC website, SEC Chairman Paul S. Atkins delivered a speech at the Blockchain Summit in Washington, D.C. on March 17, officially announcing the launch of the cryptocurrency asset regulatory framework "Regulation Crypto Assets" and issuing interpretive guidance on token classification and investment contract determination. In terms of asset classification, the SEC clearly identifies four categories of crypto assets that are not securities: digital commodities, digital collectibles, digital tools, and payment stablecoins as defined under the GENIUS Act. The only category of crypto assets still subject to securities laws is digital securities—tokenized forms of traditional securities. Regarding investment contract determination, the SEC clarifies the conditions under which an investment contract terminates, requiring project teams to provide clear and unambiguous disclosures of their core management activities. Once an investment contract terminates, the associated crypto assets are no longer subject to securities regulations. In terms of exemption pathways, Atkins proposed three proposed mechanisms: first, a "Startup Exemption" allowing projects to raise up to $5 million over four years; second, a "Funding Exemption" permitting up to $75 million in fundraising within 12 months, subject to filing disclosure documents with the SEC; and third, an "Investment Contract Safe Harbor" providing clear criteria for non-securities classification of qualifying crypto assets. Atkins stated that the SEC plans to seek public comment on the above proposed rules in the coming weeks and will collaborate with the Commodity