U.S. SEC to fast-track crypto with ‘innovation exemption’
U.S. Securities and Exchange Commission Chair Paul Atkins plans to introduce an "innovation exemption" before year's end that would allow crypto firms to launch certain products more rapidly without waiting for full regulatory approval.
Atkins said he wants the exemption in place by December 2025 to enable crypto firms to bring new technologies and products to market more quickly. The exemption would reduce or temporarily waive regulatory requirements that currently delay product launches.
The U.S. SEC’s chair made the remarks at a public event where he confirmed work is underway to draft new crypto rules in the coming months. The exemption would let some businesses enter the market without meeting compliance demands that may conflict with innovation.
The proposal builds on earlier comments by Atkins in July, when he suggested loosening certain regulatory burdens for new crypto technologies. Atkins said he aims to "let crypto firms immediately launch products" under the innovation exemption, indicating that traditional timelines and requirements might be shortened or adjusted.
He emphasized that the exemption would not represent blanket deregulation but would preserve investor protections while enabling faster deployment for technologies that demonstrate compliance and transparency.
The U.S. SEC’s chair made the remarks at a public event where he confirmed work is underway to draft new crypto rules in the coming months. The exemption would let some businesses enter the market without meeting compliance demands that may conflict with innovation.
The proposal builds on earlier comments by Atkins in July, when he suggested loosening certain regulatory burdens for new crypto technologies. Atkins said he aims to "let crypto firms immediately launch products" under the innovation exemption, indicating that traditional timelines and requirements might be shortened or adjusted.
He emphasized that the exemption would not represent blanket deregulation but would preserve investor protections while enabling faster deployment for technologies that demonstrate compliance and transparency.
The crypto industry has criticized slow regulatory processes in the U.S., arguing they hamper innovation and push activity to other countries. The SEC under previous leadership launched multiple enforcement actions and required compliance before product launches.
Under Chair Atkins, the SEC has signaled a more accommodating approach toward crypto regulation. The agency has indicated willingness to work with companies rather than pursue enforcement-first strategies.
The "innovation exemption" forms part of broader SEC efforts to modernize rules around crypto tokens, custody, and trading. The agency aims to balance faster innovation with protection for investors and market integrity.
Atkins has not disclosed specific criteria that would qualify companies for the exemption or which types of crypto products would be eligible. The SEC chair indicated that details would be released as the December deadline approaches.
The proposed exemption represents a significant shift from the SEC's previous approach under former Chair Gary Gensler, who emphasized enforcement and required extensive compliance before allowing new crypto products to launch.
Industry participants have not yet commented publicly on the specific proposal, though crypto trade associations have previously called for regulatory clarity and faster approval processes.
Under Chair Atkins, the SEC has signaled a more accommodating approach toward crypto regulation. The agency has indicated willingness to work with companies rather than pursue enforcement-first strategies.
The "innovation exemption" forms part of broader SEC efforts to modernize rules around crypto tokens, custody, and trading. The agency aims to balance faster innovation with protection for investors and market integrity.
Atkins has not disclosed specific criteria that would qualify companies for the exemption or which types of crypto products would be eligible. The SEC chair indicated that details would be released as the December deadline approaches.
The proposed exemption represents a significant shift from the SEC's previous approach under former Chair Gary Gensler, who emphasized enforcement and required extensive compliance before allowing new crypto products to launch.
Industry participants have not yet commented publicly on the specific proposal, though crypto trade associations have previously called for regulatory clarity and faster approval processes.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
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