SEC’s Paul Atkins Pushes for ‘Innovation Exemption’ to Revive U.S. Crypto Leadership

The U.S. Securities and Exchange Commission is advancing an "innovation exemption" to bolster domestic cryptocurrency development. Chair Paul Atkins confirmed the initiative remains a priority despite the government shutdown, signaling a strategic shift to reclaim America's position as a blockchain leader.

The proposed framework would create a regulatory sandbox for crypto firms, allowing controlled testing of blockchain-based services. This addresses longstanding industry complaints about opaque enforcement driving innovation offshore. "Years of restrictive oversight stifled growth," Atkins noted, underscoring the need for clear rules to reverse capital and talent flight.

Market observers view the exemption as a potential watershed moment. By providing legal certainty, the SEC aims to stem the exodus of crypto startups to jurisdictions like Singapore and Switzerland. The MOVE aligns with broader efforts to establish coherent digital asset policies amid competing Congressional proposals.