SEC Chairman Paul Atkins announced the development of an "innovation exemption" for cryptocurrency.
The regulator is attempting to establish a solid foundation for digital assets in the US, following Donald Trump's directives aimed at expanding oversight of the sector.
The US Securities and Exchange Commission (SEC) is working on creating an "innovation exemption" that will streamline the approval process for digital asset products by the end of the year, SEC Chairman Paul Atkins announced.
In an interview with Fox Business, Atkins noted that the SEC will work on "rulemaking in the coming months." The agency is developing a package of "innovation exemptions" that will remove bureaucratic hurdles for crypto projects. The reforms will cover asset tokenization, DeFi protocols, and institutional investment.
According to Atkins, the "innovation exemptions" will provide crypto companies with temporary relief from old securities regulations to issue new products under more lenient oversight while the SEC develops new rules.
Regulatory Actions
Atkins' pro-digital asset rhetoric is consistent with his campaign to implement industry-friendly policies in line with President Donald Trump's executive orders. Earlier this month, the SEC and the Commodity Futures Trading Commission (CFTC) announced they were inviting existing companies to continue working with cryptocurrencies and that they should contact them with any questions about further action.
The SEC also published an agenda outlining its planned rules for the offer and sale of cryptocurrency securities, including exemptions and safe harbors. Atkins noted:
"We're trying to provide the market with a stable platform on which they can introduce new products. We'll be developing rules in the coming months. We're seeking an innovation exception to implement by the end of the year."
Last week, the agency allowed exchanges to list exchange-traded products (ETPs) containing spot commodities, including cryptocurrencies, without requiring individual review by the agency. This is a common listing standard that will lower barriers to entry for new products.