SEC’s Game-Changing ’Innovation Exemption’ Set to Slash Crypto Regulations by Year-End

Wall Street's watchdog finally gets with the program—regulators plan to unleash crypto innovation with new regulatory breathing room.

The Regulatory Shift

SEC officials confirm they're crafting a special exemption framework specifically for blockchain projects. This isn't just paperwork—it's a fundamental rethink of how digital assets get treated.

Timeline Matters

The commission targets full implementation before New Year's Eve. That lightning-fast timeline signals serious commitment—not just regulatory theater.

Industry Impact

Startups can finally breathe easier while established players scramble to adapt. The exemption could trigger the biggest wave of blockchain innovation since the last bull run.

Because nothing says 'innovation' like needing government permission to innovate—but hey, we'll take regulatory progress where we can get it.

Paul calls for fewer reports, more IPOs, and tighter rulemaking with CFTC

Paul also wants to cut down on how often companies report earnings. He told Maria Bartiromo the current quarterly system is outdated, and backed Trump’s suggestion that companies should report just twice a year. Paul pointed out that before 1970, U.S. public companies didn’t report every quarter.

“Foreign companies listed in the U.S. only report every six months,” he said, arguing it’s time to review whether the current structure still makes sense.

He also noted that there are half as many public companies now as there were 30 years ago. That’s why he said, “I want to make IPOs great again.” Paul blamed a long list of problems—litigation threats, overwhelming compliance costs, and even what he called “weaponization of corporate governance”—for why going public has become a nightmare for most startups. He said companies like Apple and Microsoft used to go public early to raise capital. Now, most of them stay private for as long as possible.

Paul stressed the SEC is working closely with the CFTC on crypto oversight, and confirmed they’ll be holding a joint roundtable this week.

He said years of staff-level turf wars have killed products like single-stock futures and portfolio margining. “The field is littered with bodies of would-be products,” Paul said, blaming the lack of coordination between agencies. He wants joint rulemaking with the CFTC to remove that uncertainty once and for all.

SEC prepares new rules for crypto access, ETFs, and investor protection

Paul also addressed the Senate delay on crypto market structure legislation. He said the SEC is providing technical help to both chambers of Congress as they rewrite the rules.

Paul supports the Genius Act, recently passed by Congress and signed by Trump, which officially recognized stablecoins in U.S. law for the first time. He called the legislation “a huge step forward” and wants to follow it up with permanent joint rulemaking so future regulators can’t undo it.

On the ETF front, Paul said the SEC approved the first U.S. multi-crypto ETF and will soon finalize rules for generic listing standards to prevent future delays. “It’s not just an ad hoc type of approach,” he said.

Paul also touched on plans to expand retail investor access to private companies, including 401(k) access to crypto and tech funds. He said retail investors deserve access, not just the ultra-wealthy.

But he added the SEC will work with the Department of Labor to build in guardrails, like stronger disclosures, better liquidity options, and advisor accountability. “We’ll put protections in to make sure we guard against bad outcomes,” said Paul.

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