The Securities and Exchange Commission (SEC), the U.S. securities regulator, has forwarded a proposed rule called Regulation Crypto Assets to the White House. Proposed on August 18 under SEC Chairman Paul S. Atkins, the framework would create two exemptions from traditional securities registration: a startup exemption allowing projects to raise up to $5 million over four years, and a fundraising exemption permitting up to $75 million within 12 months, subject to audited financial statements and ongoing reporting. Its most consequential provision is a conditional investment contract safe harbor that could let a token move from security status to a non-security crypto asset once the founding team’s essential management efforts cease and the network becomes sufficiently decentralized. The proposal follows a joint interpretation issued by the SEC and CFTC (U.S. derivatives regulator) in March 2026 that classified certain digital assets, including Bitcoin and Ether, as non-securities. Public comments are due by October 20. The framework could provide domestic fundraisers with a clearer compliance path, reduce uncertainty for exchanges listing sufficiently decentralized tokens, and clarify the investor protections applicable at different stages of a token’s lifecycle.