SEC Advances "Innovation Exemption" to Catalyze U.S. Crypto Development

The SEC is poised to introduce an "innovation exemption," granting companies greater flexibility to develop digital assets and emerging technologies. Chair Paul Atkins confirmed the proposal could be formalized by late 2025 or early 2026, despite delays from the government shutdown. The exemption aims to establish a clear, pro-innovation framework for crypto, countering years of restrictive oversight that pushed development offshore.

Parallel efforts include the GENIUS Act, which empowers the Treasury to draft stablecoin regulations. These rules are expected to accelerate real-world adoption and integration into financial systems. "Developing this exemption remains a top priority," Atkins emphasized at a recent legal event in Manhattan, signaling the SEC's commitment to balancing oversight with growth.