- SEC’s innovation exemption aims to fast-track crypto launches by December 2025.
- The exemption boosts U.S. crypto growth, but questions on oversight raise concerns.
- Atkins’ reform could reshape global crypto regulation, balancing innovation and clarity.
The U.S. SEC (Securities and Exchange Commission) plans to roll out a landmark “innovation exemption” by December 2025, under the leadership of Paul Atkins. The policy aims to alleviate regulatory hurdles for cryptocurrency firms, allowing them to launch products in the U.S. without facing restrictions. According to sources, this development would expose blockchain companies to a dynamic competitive environment of digital asset innovation.
Atkins agreed that the existing regulations are impeding the development of blockchain and added that the rules were written for traditional finance. Atkins pointed out that with the new rules, crypto companies could seamlessly penetrate the U.S. market, thus boosting industry growth.
Crypto Regulation and Global Competition
This move aligns with Atkins’ broader vision of reform, which he has been championing since taking office in April 2025. On September 10, he emphasised that “Crypto’s time has come,” signalling a departure from the previous administration’s harsh regulatory stance. Atkins has promised to replace surprise enforcement actions with clear guidance, allowing companies to navigate the regulatory landscape.
Atkins pointed out that the SEC’s approach has changed its stance over crypto, promising that the firms would no longer be targeted by aggressive enforcement. Instead, he stated that the regulatory agency would provide clear paths to compliance before using enforcement.
The SEC’s new direction is committed to promoting global competition in digital assets. Atkins lauded the EU’s MiCA framework as a template for crypto regulation and advocated international cooperation to develop global standards in the emerging space.
Atkins also pointed out the creation of crypto “super-apps,” where users could trade, stake, lend and store their digital assets from a single regulatory license, thus viewing the intersection of blockchain and artificial intelligence (AI) as the next frontier for financial innovation.
Notably, the SEC had a strong hold on the digital asset firms during Gary Gensler’s tenure, but the stance changed after the election of Donald Trump. Following the President, Atkins has also extended a favourable stance toward the cryptocurrency ecosystem.
Related: SEC Chair Atkins Launches ‘Project Crypto’ to Modernize U.S. Rules for On-Chain
The Future of U.S. Crypto Regulation
The “innovation exemption” could make it easier for U.S. crypto companies to launch products more quickly, positioning the nation as a leading hub for blockchain development. The new regulatory flexibility is expected to attract more innovation, thus strengthening the country’s role in the global digital asset market.
Meanwhile, U.S. lawmakers are intensifying their efforts to define digital asset oversight. The debate surrounding the SEC and Atkins is evident in the updated Responsible Financial Innovation Act.
The bill, released on September 7, aims to define the roles of the SEC and CFTC in regulating digital assets. It also includes protections for decentralized finance (DeFi) developers and emerging sectors like decentralized physical infrastructure networks (DePINs).
The draft bill suggests forming a Joint Advisory Committee on Digital Assets. This committee would require the SEC and CFTC to address its nonbinding recommendations. Atkins and CFTC Acting Chair Caroline Pham have urged both agencies to align, reducing regulatory overlap to support innovation in the digital asset sector.
