Token Safe Harbor
2 articles
SEC Innovation Exemption and Token Safe Harbor: A Founder's Guide to Regulation Crypto Assets (Updated August 2026)
On August 18, 2026 the Commission proposed Regulation Crypto Assets—402 pages of rule text creating a new 17 C.F.R. part 228, with a $5 million startup exemption, a two-tier fundraising exemption, an investment contract safe harbor, and blue-sky preemption through section 18(b)(3). The proposal has not yet reached the Federal Register, so the 60-day comment clock has not started. What founders can use now, what changed, and where the rule is still exposed.
Who Qualifies for the SEC's Token Startup Exemption and Safe Harbor?
Eligibility for the SEC's proposed token exemptions is a three-gate analysis: classification, pathway, and exit. Run the gates in order and most founders' answer changes from 'wait for the rule' to something they can act on today.
Need Counsel for Your Digital Asset Business?
Token classification, regulatory strategy, and transactional support from attorneys who work in this space every day.
Talk to an Attorney