The U.S. Securities and Exchange Commission plans to create an “innovation exemption.” This new rule would offer big benefits for digital asset companies. It would ease regulatory and paperwork burdens. SEC Chairman Paul Atkins hopes to formally introduce this exemption before the end of the year or in early 2026. This is despite challenges from the current partial government shutdown.
Atkins discussed these plans at the Futures and Derivatives Law Report event. Katten Muchin Rosenman LLP hosted the gathering in New York. The news was first reported by CoinDesk.
A New Focus on Innovation
Atkins made it clear that the cryptocurrency industry is a top priority for the SEC. He wants the agency to be seen as a supporter of new technology. He aims for it to be open to growth.
“We’ve seen at least four years of tough rules in this industry,” Atkins said. He was on a panel with former commissioner Troy Paredes. “This pushed new ideas out of the country.” The new exemption aims to stop this trend. It offers a clearer, more predictable path for creators and businesses. “I want innovators to feel they can build here, in the United States,” he explained. “They shouldn’t have to leave for other places.”
If it happens, this move would be a big change. Past policies often used “regulation through lawsuits.” This new approach would bring formal rules. It would involve public discussions and clear standards. Atkins admitted that the government shutdown has slowed down writing these new rules. Only “essential tasks” are continuing. Other projects, including those for cryptocurrencies, are on hold.
Working with Congress
Atkins also praised the U.S. Congress for its work on specific crypto laws. He highlighted the GENIUS Act. This was the first law focused on using and issuing stablecoins in the country.
“This bill has market structure ideas, and we’ll see how it develops,” he noted. He sounded hopeful for more laws to make the crypto world clearer. However, other experts on the panel were more careful. Summer Mersinger, Executive Director of the Blockchain Association and a former CFTC Commissioner, put the chance of a full market structure law passing this year at only 51% or 52%. Greg Xethalis, a partner at Multicoin Capital, and Chris Perkins from CoinFund, agreed. They said while legislative work is good, a sweeping law is still not certain.
Stablecoins Get a Boost
The GENIUS Act, passed earlier this year, is already showing results. The Treasury Department has shared ideas for regulating stablecoins. This sets the stage for these digital coins to be used more for payments and financial deals.
Xethalis believes that “with clear rules now, developers will start using these tools a lot every day.” He pointed to Visa adding USDC stablecoin to its payment systems. This shows how people might be using crypto without even knowing it. Mersinger added that stablecoins can keep growing. They have potential for use as collateral and for moving money between institutions.
With the promise of an “innovation exemption” coming, the SEC’s new leadership could start a new chapter. This regulatory shift might shape the future of cryptocurrencies in the United States. It aims to find a balance between oversight and encouraging new technology.
🚨 The US SEC announces an “innovation exemption” for crypto companies
Chair Paul Atkins seeks to revitalize the industry with a clear regulatory framework.
The measure could be introduced before 2026, despite the partial government shutdown.
It is expected to attract… pic.twitter.com/0vgiF40xGs
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