- SEC prepares “innovation exemption” to speed crypto product launches in U.S. markets
- Policy shift marks softer stance on enforcement, with support for DeFi and tokenization
- Atkins pushes IPO revival, aiming to boost U.S. listings and attract fresh investments
The U.S. Securities and Exchange Commission (SEC) is preparing to roll out an “innovation exemption” by year-end, aiming to let crypto firms launch products more quickly without being bogged down by rules designed for older financial markets.
SEC Chairman Paul Atkins said the exemption would provide “a stable platform” for companies to introduce new products while keeping investor safeguards intact. The move reflects a broader effort to modernize oversight and make U.S. markets more competitive for emerging technologies.
Related: SEC Chair Atkins Adopts Softer Enforcement, Signals Pro-Crypto Regulatory Shift
Streamlining Crypto Market Entry
According to Blloomberg report, the SEC intends to balance oversight with innovation by allowing certain crypto projects to bypass regulatory requirements that don’t fit digital assets. Startups and smaller firms would be able to enter the market faster, reducing compliance costs and encouraging growth.
The exemption is expected to give a boost to decentralized finance (DeFi) and tokenization, areas that have struggled under uncertain rules. By cutting the red tape, the SEC hopes to spur development in these sectors while still retaining enforcement powers where necessary.
Softer Stance After Years of Crackdowns
The shift marks a departure from the Biden-era SEC, which pursued aggressive enforcement actions against crypto firms. Several cases have already been dropped, signaling a softer approach under Atkins.
A new crypto task force has also been formed to steer regulatory updates and clarify rules for market participants. The agency’s message is clear: oversight remains, but the U.S. wants to be seen as a friendlier jurisdiction for digital asset innovation.
IPO Revival on the Agenda
Beyond crypto, Atkins pushed for a revival of the U.S. IPO market, noting that the number of public companies has fallen by half over the last three decades.
“I want to make IPOs great again,” he remarked, underscoring his broader agenda to revitalize public markets. By easing regulatory requirements and providing clear frameworks, Atkins hopes to stimulate market activity, attract investment, and foster economic growth.
Related: SEC and CFTC Issue Vague Crypto Statement, But Lawyers Say Nothing Has Changed
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