SEC to Introduce Crypto Innovation Exemption by Year-End
The U.S. Securities and Exchange Commission (SEC) is set to introduce an innovation exemption for the crypto industry by the end of the year. This move aims to retain domestic crypto talent and prevent startups from relocating overseas. SEC Chair Paul Atkins has been championing this initiative since June.
Atkins has made the innovation exemption a top priority. Despite the ongoing government shutdown, he remains committed to finalizing the exemption. The SEC plans to regulate crypto once the exemption is formalized, with rulemaking expected to begin by the end of 2025 or early 2026.
Atkins' goal is to foster a supportive environment for crypto innovators in the U.S. He acknowledged that the current situation may hinder the SEC's work but stressed that the exemption remains a key focus. The SEC chair has been pushing for this initiative since June, when he directed staff to explore a conditional relief framework for crypto projects.
The SEC's innovation exemption, expected by the end of 2023, aims to keep crypto talent and startups in the U.S. Once formalized, the SEC will regulate crypto, with rulemaking slated for late 2025 or early 2026. Despite challenges, SEC Chair Paul Atkins remains committed to this priority.
