CMC News

#SEC Chair Announces Innovation Exemption for Crypto Products

#PaulAtkins has revealed plans to implement regulatory relief measures for digital asset companies by December 2025. The "innovation exemption" would provide temporary relief from existing securities rules while the SEC develops tailored #crypto regulations.

Speaking on Fox Business, Atkins outlined upcoming rulemaking initiatives scheduled for the coming months. The exemption represents a significant departure from previous SEC approaches, offering companies flexibility to launch products under lighter oversight frameworks.

This initiative builds upon the recent approval of America's first multi-asset crypto exchange-traded product. The fund provides investors access to $BTC, $ETH, $XRP, $SOL, and $ADA through Grayscale's newly launched offering under streamlined listing standards.

Atkins launched "Project Crypto" in July, modernizing securities regulations around digital assets to help America's financial markets transition on-chain. The comprehensive initiative aims to dramatically reduce regulatory burdens while accelerating #digital asset integration with traditional finance.

The SEC chair's approach contrasts sharply with predecessor Gary Gensler's stance on cryptocurrency regulation. While Gensler maintained most digital assets should be treated as securities under the Howey test, Atkins argues very few tokens actually qualify as securities.

Project Crypto includes potential exemptions for ICOs, #airdrops, and network rewards that would otherwise face securities law scrutiny. These safe harbors could significantly reduce compliance costs for blockchain projects and encourage innovation within the United States.

The agency's latest rulemaking agenda indicates plans to establish new rules regarding crypto asset offers and sales.