The United States Securities and Exchange Commission (SEC) is finalizing plans for an "innovation exemption" aimed at cryptocurrency firms, with Chairman Paul Atkins confirming its expected rollout by the end of 2025. This exemption will allow both registered and non-registered entities to launch new blockchain-based products and services without immediately facing traditional securities regulations, providing conditional relief to spur innovation.
Atkins, speaking on Fox Business, stated the goal is to create a "stable platform upon which firms can introduce their products," marking a significant shift from the SEC's previous enforcement-heavy approach under the Trump administration. The agency has already dropped several enforcement cases initiated during Gary Gensler's tenure and formed a dedicated Crypto Task Force to develop clearer rules.
The exemption is part of a broader push to make the U.S. the "crypto capital of the planet," with Atkins linking it to efforts to revitalize public markets and promote tokenization. In June, he discussed a "blockchain relief framework" at an SEC roundtable, and in July, he highlighted plans for tokenized securities ecosystems. The initiative coordinates with the CFTC's recent actions, such as approving 24/7 trading, and follows the passage of the GENIUS Act in Congress.
Additionally, the SEC's Crypto Task Force has been holding nationwide roundtables to gather input, emphasizing a balance between innovation and consumer protection. Atkins has framed the exemption as a way to prevent innovation from moving offshore, underscoring its role in fostering domestic growth.