Interpretive Releases Are Reversible. Formal Rulemaking Is Law.
The March 17, 2026 joint SEC-CFTC interpretive release (Release No. 33-11412) declared Bitcoin and 15 other cryptocurrencies to be digital commodities. That was step one.
At the DC Blockchain Summit, SEC Chair Paul Atkins announced what comes next: a formal rulemaking proposal exceeding 400 pages. This is categorically different from an interpretive release.
Here's why it matters: interpretive releases explain how an agency reads existing law. They can be changed or reversed by the next administration. Formal rulemaking, once finalized, has the force of law and requires a full notice-and-comment process to change. It binds future SEC administrations. That's a much higher bar.
The proposed rulemaking creates three safe harbors:
- Startup exemption -- projects raising under $5 million over four years can operate without SEC registration while building their network.
- Fundraising exemption -- established projects can raise up to $75 million annually without triggering securities law requirements.
- Investment contract safe harbor -- a permanent pathway to exit SEC oversight once a network demonstrates sufficient decentralization.
Bitcoin is already outside the framework entirely under the March taxonomy. The rulemaking primarily covers the ecosystem around Bitcoin -- altcoins, DeFi protocols, token issuers -- seeking clarity.
SIFMA, Wall Street's primary lobbying arm, filed formal opposition citing the October 2025 flash crash and November 2025 exchange collapse as evidence that innovation exemptions are premature.
The safe harbors represent what Project Crypto was always designed to do: not deregulation, but regulation built for 2026 instead of 1940s securities law.