- SEC aims to start innovation exemption rulemaking by end of 2025 or Q1 2026.
- Initiative seeks to foster domestic crypto and blockchain innovation.
- Government shutdown delaying non-essential SEC activities.
- Shift signals end to regulation-by-enforcement era for digital assets.
The U.S. Securities and Exchange Commission is moving to formalize an ‘innovation exemption’ to encourage cryptocurrency and blockchain development within the country.
SEC Chair Paul Atkins announced the plans at a New York event, targeting rulemaking initiation by late 2025 despite ongoing government challenges.
The exemption would allow firms to experiment with digital asset technologies under regulatory oversight, potentially stemming the flow of innovation overseas.
Atkins highlighted past policies’ negative impact: “As you know, we’ve had four years, at least, of repression of that industry, and with the result of pushing things abroad, rather than having innovation being done.”
As you know, we’ve had four years, at least, of repression of that industry, and with the result of pushing things abroad, rather than having innovation being done.
Paul Atkins
This pro-innovation stance marks a significant pivot for the agency, prioritizing U.S.-based growth in the sector.
Cryptocurrencies like Bitcoin could see increased domestic adoption under the new framework. (CryptoPress Coins)
Similarly, Ethereum-based projects may benefit from reduced regulatory hurdles.
Atkins expressed confidence in the timeline, stating it’s a top priority to welcome innovators and prevent them from seeking foreign jurisdictions.
The announcement comes alongside progress on stablecoin regulations via the GENIUS Act, with Treasury proposing related rules.
Industry observers note this could lead to a ‘Cambrian explosion’ in stablecoin utilization.
The reactions on X were swift:
On X, Wu Blockchain shared: “U.S. SEC Chair Paul Atkins said SEC plans to formally initiate rulemaking for an “Innovation Exemption” by the end of 2025 or early 2026.”
While optimistic, some experts remain cautious on broader crypto legislation passing this year.
The exemption represents a balanced approach, combining oversight with flexibility to maintain U.S. leadership in fintech.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
© Cryptopress. For informational purposes only, not offered as advice of any kind.
