- SEC Chair Paul Atkins says an “innovation exemption” for crypto will be released within weeks.
- The agency is coordinating with Congress to build a more supportive regulatory environment.
- Stock exchanges are cautioning the SEC about looser rules amid the growth of tokenized assets.
US regulators are shifting tone as global competition intensifies, aiming to promote digital-asset innovation while balancing investor protections and market integrity. In a major development, SEC Chair Paul Atkins said Tuesday that the agency is preparing an “innovation exemption” for crypto — a framework designed to help blockchain projects launch more easily in the United States. After years of regulatory friction, this marks one of the clearest signs yet that the SEC is ready to modernize its approach to the industry.
SEC Targets One-Month Timeline for Crypto Innovation Exemption
Atkins confirmed the exemption is expected within the next several weeks, noting that the recent government shutdown delayed internal progress but did not derail the overall plan. Speaking on CNBC’s Squawk Box, Atkins said the SEC has been coordinating with Congress, providing technical assistance on pending crypto legislation. The exemption is intended to give developers and platforms more regulatory breathing room, allowing compliant on-chain products to come to market faster.
“We’re on track,” Atkins said. “We will be able to forge forward with a crypto area and make sure we embrace this new area of innovation that the United States has pushed back against for too long.”
A Push to Make the US a Competitive Blockchain Hub
The new exemption could lower barriers for crypto platforms looking to operate in the US, aligning with broader policy efforts to keep the country competitive as Europe, Asia, and South America accelerate their digital-asset frameworks. By formalizing clearer rules for crypto startups and institutional-grade on-chain products, the SEC hopes to catalyze innovation rather than suppress it. This is a significant shift from years of enforcement-heavy oversight that often drove companies offshore.
Stock Exchanges Raise Concerns as Tokenized Assets Grow
Not everyone is celebrating the upcoming easing of restrictions. Major stock exchanges have warned the SEC about potential risks tied to tokenized stocks, global trading access, and looser rules for crypto-native platforms. Traditional market operators fear that rapid on-chain experimentation — especially involving tokenized equity — could introduce new vulnerabilities or raise competitive concerns. Balancing innovation with safeguards will likely shape much of the debate as the exemption moves closer to release.
