Atkins Pushes SEC’s New Crypto Innovation Exemption
- Atkins pushes rapid SEC action with an innovation exemption expected within a month
- SEC advances crypto rulemaking while Congress works on broader digital-asset reforms.
- Project Crypto creates clearer token rules and conditional relief for innovators.
The Securities and Exchange Commission will move forward with digital asset regulation without waiting for Congress, as Chair Paul Atkins said the agency has the authority to introduce an innovation exemption within one month. He spoke on Tuesday and outlined a plan that places the commission at the center of major regulatory decisions expected to shape the digital asset industry in 2026.
He also said the agency continues to support lawmakers while it builds independent rulemaking for the crypto sector after months of government shutdown delays.
Regulatory Roadmap Ahead of 2026
Atkins told CNBC that the SEC continues to offer technical assistance as Congress studies legislation tied to digital asset regulation. He referred to the market structure bill now moving through the U.S. Senate. He noted that the agency still advances critical rules even after operations slowed during the longest government shutdown in U.S. history.
He confirmed plans to publish the innovation exemption within about a month. He said the SEC holds enough regulatory authority to proceed with core policies. He added that the commission can act through existing rulemaking tools.
Atkins spoke at the New York Stock Exchange after ringing the opening bell. He outlined several priorities for the agency as the United States moves toward its 250th anniversary.
Project Crypto and Token Framework
Atkins described the exemption as part of Project Crypto, a policy effort designed to give digital asset and tokenisation projects conditional relief from traditional securities rules. This relief aims to support innovation while protecting investors. He said the SEC will continue to assist Congress but will not pause rulemaking while lawmakers debate broader legislation.
Project Crypto seeks to redefine how federal securities laws apply to specific tokens. The plan may introduce a formal token taxonomy shaped through long-standing legal tests, including the Howey investment-contract test. This framework will help determine which assets fall under securities oversight and which do not.
Atkins announced Project Crypto in July. He described it as a regulatory modernization effort aimed at placing American financial markets on blockchain rails. He called the moment a generational opportunity and said, “The future is arriving at full speed, and the world is not waiting.”
One major goal involves implementing recommendations from President Trump’s Working Group on Digital Asset Markets. The initiative seeks to reduce legal uncertainty that restricts development across the crypto sector.
Related: SEC Reveals Token Taxonomy Plan After Government Reopens
Legislative Developments and Market Impact
The SEC recently proposed a token classification system with four categories: digital commodities, digital collectibles, digital tools, and tokenized securities. The system includes a sunset feature that ends the asset’s security status once decentralization is proven and code is deployed.
The ongoing market structure bill intends to create clearer lines between regulatory agencies and improve oversight across digital asset markets. The innovation exemption may give crypto projects modified compliance pathways. This could allow them to test products under lighter rules while still fitting within a defined regulatory structure. The approach reflects the SEC’s shift toward building rules that support emerging technologies.
Committees in the Senate Agriculture and Senate Banking panels continue work on the market structure bill. Senate Banking Chair Tim Scott said the committee aims to prepare the bill for markup in December.
Crypto firms and token developers could gain early access to a more flexible regulatory runway through the exemption. Investors could also see new compliant products as the framework develops. Yet the broader question remains: which digital assets will qualify for the exemption?
Atkins said the SEC intends to act quickly to keep pace with global financial innovation. He said the United States must maintain competitiveness as tokenization advances across major markets.
