SEC Chair Paul Atkins confirmed on April 7, 2026 that a proposal internally called "Reg Crypto" is awaiting White House sign-off and will be published soon after clearance. The framework covers fundraising rules and startup exemptions specific to crypto projects, with a separate innovation exemption expected to follow shortly after the initial publication.
The announcement was reported by CoinDesk, citing Atkins directly.
What Reg Crypto Actually Covers
The proposal targets two persistent problems that have kept crypto fundraising in a legal gray zone since the SEC began applying the Howey test to token sales in 2017.
First, fundraising rules. Crypto projects that want to raise capital by selling tokens currently face a binary choice: register as a security (expensive, slow, designed for equity) or rely on narrow exemptions like Reg D and Reg A+ that were built for traditional startups. Neither fits well. Reg D limits who can buy. Reg A+ caps how much can be raised and requires audited financials that early-stage protocols often cannot produce. Reg Crypto would create a third path designed around token-specific structures.
Second, startup exemptions. Early-stage crypto projects operate in a window where their tokens may function as securities during fundraising but transition to utility or governance tokens once the network launches. The SEC has never formally recognized this transition. Reg Crypto reportedly addresses it by carving out exemptions for projects that meet certain decentralization or functionality milestones.
The Innovation Exemption
Atkins indicated a separate "innovation exemption" will follow the Reg Crypto publication. Details are sparse, but the framing suggests it would let projects operate under temporary relief while complying with the new framework, similar to the sandbox approaches adopted by regulators in Singapore, the UK, and the UAE.
The distinction matters. Reg Crypto would be the permanent rulebook. The innovation exemption would be the grace period for existing projects to transition into compliance without halting operations.
Why the White House Gate Matters
SEC rulemaking proposals typically go through internal commission votes before publication. Atkins framing this as "awaiting White House sign-off" suggests the proposal has been coordinated with the broader administration's crypto policy, which has included the GENIUS Act stablecoin framework and the Department of Labor's 401(k) crypto guidance.
This coordination could mean the proposal is broader than a typical SEC rule. If the White House is reviewing it, the language may need to align with Treasury Department positions on stablecoins, CFTC jurisdiction boundaries, and existing executive orders on digital assets.
It also introduces a political variable. White House sign-off is not a rubber stamp. Policy staff may push for changes, additions, or delays depending on how the proposal interacts with ongoing legislative efforts in Congress. The stablecoin bill and market structure bill (FIT21's successor) are both moving through committees, and a Reg Crypto proposal that contradicts or preempts legislative intent could face pushback.
What This Means for Crypto Fundraising
The current enforcement-first approach has pushed token fundraising offshore or into convoluted legal structures. Projects incorporate in the Cayman Islands, restrict US participation, and use SAFT agreements that create legal complexity without regulatory clarity. A dedicated Reg Crypto framework would not eliminate those structures overnight, but it would give US-based projects an alternative to the "launch offshore, hope for the best" strategy that has dominated since 2020.
For crypto card issuers and wallet providers, the downstream effects depend on whether Reg Crypto treats payment tokens differently from governance or utility tokens. Card programs like those offered by Coinbase, Crypto.com, and ether.fi already operate under money transmission and banking licenses. But projects that issue their own tokens for cashback rewards or staking benefits could face new compliance requirements, or find relief from existing ambiguity, depending on how the exemptions are structured.
The Timeline Question
Atkins said "soon" without giving a date. In SEC rulemaking, "soon" after White House review can mean weeks or months. The initial publication would be a proposed rule, not a final one. That triggers a public comment period (typically 60-90 days), followed by revisions, another commission vote, and final adoption. Even with an accelerated timeline, final rules are unlikely before late 2026 or early 2027.
The innovation exemption could move faster if structured as staff guidance or a no-action letter framework rather than formal rulemaking. Those mechanisms do not require commission votes or comment periods.
Bitcoin traded at $69,139 as of April 7, 2026, down 1% over 24 hours. ETH sat at $2,127, down 1.2%. The Fear and Greed Index read 36 (Fear). Markets did not react to the Reg Crypto news in the immediate hours after the announcement, consistent with the pattern of pricing in regulatory developments only after concrete text is published.
Overview
SEC Chair Paul Atkins confirmed that a crypto-specific rulemaking proposal called Reg Crypto, covering fundraising exemptions and startup-specific provisions, is awaiting White House sign-off. A separate innovation exemption is expected to follow. The proposal would create a dedicated registration path for token sales, distinct from existing securities frameworks. Final rules remain months away, pending a public comment period and commission vote.
