The Securities and Exchange Commission is set to hold a public meeting on Friday at 10 a.m. to vote on whether to publish a proposed "Regulation Crypto" framework for certain crypto asset investment contracts, marking Chair Paul Atkins's first formal crypto rulemaking step and opening a public comment process rather than creating an immediate final rule. The proposal is expected to move forward under the SEC's three Republican commissioners and could create a tailored issuance regime for token projects even as Congress remains stalled on the CLARITY Act. The draft framework builds on Atkins's March outline for three exemptions: a startup exemption for limited fundraising, which he referenced at up to $75 million over 12 months; a larger capital-raising exemption with disclosures closer to crypto white papers than a full S-1 registration; and an investment-contract safe harbor that could let tokens move out of securities regulation once a network no longer depends on a core development team. That safe harbor is the most consequential element because it would challenge the longstanding view that a token deemed a security remains one indefinitely. The SEC's move comes just after Senate delays on the Digital Asset Market Clarity Act. The House passed the bill in July 2025 by 294-134, and the Senate Banking Committee advanced it in May by 15-9, but Senate Majority Leader John Thune pushed the next procedural vote to Sept. 15 at 2:15 p.m. after saying Democrats would not allow a vote before recess. The bill needs 60 votes, meaning Republicans must win at least seven Democratic supporters, while disputes over anti-money-laundering and enforcement provisions, stablecoin yield oversight and ethics language tied to presidential crypto holdings continue to block progress. TD Cowen analyst Jaret Seiberg put the odds of failure at 75%, while Polymarket odds of the bill being signed into law this year fell to 21% from 82% in February.