SEC Plans Innovation Exemption to Boost Crypto Products

The U.S. Securities and Exchange Commission (SEC) is preparing new rules that could make it easier for crypto companies to launch products in the United States. The regulator is signaling a friendlier stance toward digital assets, even as lawmakers continue to debate a broader crypto market structure bill in Congress.

SEC Plans Innovation Exemption to Speed Crypto Launches

According to a Bloomberg report SEC Chairman Paul Atkins announced that by the end of the year, he wants a new “innovation exemption” in place. This exemption would allow crypto firms to roll out products immediately without having to meet regulatory requirements that may not fit digital assets.

Speaking on Tuesday, Atkins revealed that the agency is also drafting new rules for the crypto industry over the next few months. He first floated the idea in July during the launch of “Project Crypto,” where he admitted that existing rules were sometimes incompatible with innovative technologies. His latest comments confirm that the SEC is actively working to provide a more balanced environment for businesses in this fast-moving sector.

The proposal comes ahead of a joint roundtable with the Commodity Futures Trading Commission (CFTC) scheduled for September 29. Both regulators aim to harmonize their frameworks to provide clarity and stability for firms and investors.

SEC Seeks Stable Ground for Crypto Innovation

According to Atkins, the SEC’s broader goal is to create “a stable platform upon which firms can introduce their products.” This approach would reduce delays caused by outdated requirements and encourage innovation. By easing these barriers, regulators hope to position the U.S. as a leader in digital finance.

Atkins also tied the initiative to a wider ambition: reviving American public markets. He noted that the number of publicly listed companies in the U.S. has dropped by nearly half over the past three decades. Expanding the path for initial public offerings (IPOs), including those from crypto firms, could restore market strength and investor participation.

SEC Adopts Flexible Approach to Crypto Regulation

The SEC’s latest actions also mark a sharp change from its previous posture Under former Chair Gary Gensler, the agency took a more aggressive enforcement approach. Several cases brought during that time have now been dropped, and a new crypto task force has been formed.

This is a pivot of the fact that the SEC is determined to create their rules in such a way that it facilitates change instead of hindering it. Atkins is marketing the Commission as a regulator that is able to be flexible, but is concerned with innovation without neglecting to protect investors.

Innovation exemption will be available by the end of the year, and the specific rules should be elaborated in 2026. At this point, crypto companies and market participants are monitoring the redesign of the role of the U.S. regulator in relation to digital assets.