SEC Chair Paul Atkins Announces ’Innovation Exemption’ for Crypto by Year-End

SEC Chair Paul Atkins revealed plans to introduce an "innovation exemption" for certain digital assets before the end of the year. The exemption, part of the SEC's "Project Crypto" initiative, aims to reduce regulatory burdens and accelerate the integration of cryptocurrencies into the traditional U.S. economy.

Teased elements of the project include safe harbors for ICOs, airdrops, and network rewards, as well as exemptions for crypto transactions that would otherwise fall under securities laws. Atkins emphasized the move as a step toward maintaining U.S. leadership in digital asset innovation.

The announcement, made during a Fox Business interview, signals the SEC's accelerating push to accommodate crypto within existing financial frameworks. Rulemakings related to the initiative are expected to be finalized in the coming months.