The U.S. Securities and Exchange Commission (SEC) is moving to accelerate crypto innovation with plans to introduce an “innovation exemption” by the end of the year, according to SEC Chair Paul Atkins. The proposal would allow new digital asset products to reach the market faster, signaling a friendlier regulatory stance toward the industry.
Speaking on Fox Business’s Mornings with Maria on Tuesday, Atkins said the SEC is pressing ahead with crypto-related rulemaking. “We’re looking for an innovation exemption to try to get that in place by year’s end,” he noted, adding that the regulator has a “lot going on” as it adapts to rapid developments in the digital asset sector.
A Shift Toward Pro-Crypto Regulation
Since taking office in April, Atkins has rolled out several initiatives aimed at modernizing the SEC’s approach to cryptocurrencies. In June, he directed staff to consider mechanisms that would let firms “bring on-chain products and services to market” more quickly. He has also launched Project Crypto, a broader effort to update securities rules for digital assets.
The move comes as lawmakers in Washington intensify their focus on crypto legislation. Congress recently passed its first stablecoin-specific bill, while both the House and Senate continue to refine competing versions of a broader crypto market structure bill. Patrick Witt, executive director of the White House Council of Advisors on Digital Assets, said Tuesday he expects a final version to pass before year’s end — a timeline Atkins welcomed.
“I’m looking forward to Congress acting on it,” the SEC chair said.
Coordination With the CFTC
Atkins also addressed speculation about a potential merger between the SEC and the Commodity Futures Trading Commission (CFTC), which circulated on social media earlier this week. He dismissed the idea but emphasized close cooperation between the two agencies.
“My hands are full right now, and we are working hand in glove with the CFTC. Harmonization is what I really envision,” he explained.
Both regulators plan to hold a joint roundtable next week focused on bringing “novel and innovative products” back to the U.S., a move that could strengthen the country’s role as a global hub for digital asset development.
The Road Ahead
With Congress pushing for new laws and the SEC preparing to streamline approvals, 2025 is shaping up to be a pivotal year for crypto regulation in the United States. For investors and innovators alike, the combination of legislative momentum and regulatory flexibility could mark a turning point in how digital assets are integrated into mainstream finance.
