Regulators push token sandbox
CFTC Chair Mike Selig called for fit‑for‑purpose rules that cover crypto, AI and prediction markets to protect innovation, while former SEC official Paul Atkins announced a Token Safe Harbor/Tokenization sandbox to grant exemptions for tokenized securities, digital commodities and stablecoins. The twin signals show U.S. regulators publicly entertaining sandboxed paths for tokenization and AI-linked markets. ( )
CFTC announced an Innovation Task Force on March 24, 2026 to build a clear U.S. regulatory framework for crypto assets, artificial intelligence/autonomous systems, and prediction markets. (cftc.gov) Michael J. Passalacqua, senior advisor to CFTC Chair Michael S. Selig, will lead the new Innovation Task Force and it will coordinate with the Commission’s Innovation Advisory Committee and other federal agencies, including the SEC. (cftc.gov) SEC Chair Paul S. Atkins’ March 17 speech implements a token taxonomy and an investment-contract interpretation that classifies four asset types as non‑securities: digital commodities, digital collectibles, digital tools, and payment stablecoins under the GENIUS Act. (sec.gov) Atkins’ proposed “Regulation Crypto Assets” previewed a time‑limited startup exemption allowing projects to raise up to $5 million over as long as four years with principles‑based disclosures as an alternative to Reg D/Reg S. (ledgerinsights.com) Multiple outlets reporting on Atkins’ framework describe a second exemption path permitting larger capital raises — reported up to $75 million within a defined window with additional filings — alongside a mature‑network exemption that applies once founders “permanently cease all essential managerial efforts.” (kucoin.com) Atkins has said formal rule proposals and a tokenization innovation exemption are imminent, with the Chair indicating proposed rules and exemptions will be released for public comment “in the coming weeks.” (genfinity.io)
