What is the SEC's proposal for an encrypted safe harbor? In fact, Atkins also mentioned in his speech in mid March: The so-called safe harbor does not mean full liberalization, but rather providing three customized exemption paths for encryption projects, allowing project parties to raise funds, test, and gradually comply under the conditions, avoiding being registered as securities from the beginning. Core objective: To leave a "regulatory track" for innovation while protecting investors. Three exemption paths: 1. Startup Exemption 1) Time limit: up to 4 years (registration exemption with limited time). 2) Maximum fundraising amount: up to $5 million within 4 years. 3) Requirement: Provide principle based disclosures (like a white paper, explaining investment contracts and underlying assets), publicly available on the website; Submit notices of exemption and withdrawal to the SEC. It is equivalent to saying that early projects can be started first without immediately going through the complete securities registration process. 2. Fundraising Exemption Financing 1) This can be considered as another fundraising channel, with a maximum of $75 million raised within any 12-month period. 2) Request to submit disclosure documents to the SEC, including principle disclosures (as above), discussion of the issuer's financial condition, and financial statements. Can be used in conjunction with other federal securities exemptions. 3. Investment Contract Safe Harbor This logic is that when the issuer completes or permanently ceases all "essential managerial efforts" (i.e. key parts of the Howey test), the relevant encrypted assets can be exempted from the definition of securities. 1) Key premise: There must be clear and unambiguous disclosure in the early stage to make it clear to investors what rights they are buying. 2) The purpose is to provide a clear "exit mechanism" for the project: once decentralization or management efforts are completed, it is no longer a security. Is the background here from before https://(x.com)/qinba frank/status/2034065157757014041? S=46&t=k6rimWSEbo2D2TXolYcM-A The SEC has issued a final explanatory guideline titled "Applicability of Federal Securities Laws to Certain Types of Cryptocurrency Assets and Certain Transactions Involving Cryptocurrency Assets", which is a clear guidance provided by the SEC in conjunction with the CFTC for the long-term framework of cryptocurrency regulation Clearly state that the four types of assets are not securities (digital commodities, collectibles, tools, payment stablecoins); Only 'tokenized traditional securities' are considered securities. It seems that the encrypted safe harbor is the landing version of this final explanatory guideline. Simply put, this crypto safe harbor is a secure channel for crypto projects (especially RWAs, tokenized assets, and early startups) to 'work first, gradually comply'.