SEC Chair Atkins Pledges Innovation Exemptions for Crypto Firms by Year End
SEC Chair Paul Atkins made a public commitment to deliver innovation exemptions for cryptocurrency firms before 2026. According to BeInCrypto, Atkins spoke at a recent Manhattan event alongside CFTC Commissioner Caroline Pham. He stated his confidence in achieving this goal despite current challenges.
The exemptions would allow Web3 businesses to bypass certain existing regulations. Atkins told attendees the initiative remains a top priority for the Commission. He wants innovators to feel welcomed in the United States.
However, progress faces immediate obstacles. The federal government shutdown has frozen all official SEC business. Individual employees can advocate for future rule changes, but the Commission cannot prepare exemptions during the shutdown period.
Rapid Market Entry for Compliant Projects
The innovation exemption represents a regulatory sandbox approach for digital asset companies. CoinDesk reported in September 2025 that Atkins described this as creating a stable platform for new products. Firms would comply with principles-based conditions rather than prescriptive requirements.
This framework aims to reduce time-to-market barriers for compliant offerings. Companies could launch token sales, staking services, and trading products more quickly. They would still face anti-fraud obligations and regulatory oversight requirements.
The CFTC already tested this approach with Polymarket. The agency declared it would take no action against the platform for previous violations. This decision allowed Polymarket to return to US markets.
Shift from Enforcement to Facilitation
The proposed exemptions reflect a broader transformation in US crypto policy. The SEC under Atkins has moved away from the enforcement-heavy approach of the previous administration. The agency dismissed civil enforcement actions against major platforms like Coinbase in February 2025.
Atkins launched Project Crypto in July 2025 to modernize securities regulations. According to official SEC statements, this Commission-wide initiative aims to enable financial markets to move on-chain. The effort aligns with President Trump's vision of making America the crypto capital of the world.
However, concerns remain about potential risks. Critics argue that explicit permission to bypass rules could destabilize capital markets without proper guardrails. The SEC must carefully construct exemption language to prevent fraud while enabling innovation. Traditional financial institutions watch closely as these changes could affect competitive dynamics.
Congress continues work on comprehensive market structure legislation. The Senate Agriculture Committee aims for action in late October 2025. The GENIUS Act for stablecoin regulation became law earlier this year. Coordinated rulemaking between the SEC and CFTC seeks to reduce jurisdictional uncertainty.
Further Reading
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