SEC Targets Year-End Approval for Crypto ’Innovation Exemption’

The U.S. Securities and Exchange Commission is prioritizing the formalization of an "innovation exemption" to foster development in digital assets, Chair Paul Atkins confirmed at a Katten Muchin Rosenman LLP event. Despite government shutdown delays, the SEC aims to finalize the rule by late 2025 or early 2026, reversing what Atkins called "four years of repression" that drove crypto projects offshore.

"Crypto is job one," Atkins reiterated, signaling the agency's pivot toward pro-innovation policies. The exemption WOULD provide regulatory clarity for blockchain builders, though timing hinges on resolving the federal budget impasse. "We'll see where that goes, but I have confidence we'll be able to do it," he stated during a panel with former Commissioner Troy Paredes.