Paul Atkins, the head of the U.S. Securities and Exchange Commission (SEC), stated that the agency plans to introduce a special legal framework for the crypto industry. He spoke about the initiative during the Futures and Derivatives Law Report event organized by the law firm Katten Muchin Rosenman in New York.
According to Atkins, the so-called innovation exemption will create a legitimate environment for companies working with digital assets and other emerging technologies. This framework will allow businesses to test products and develop solutions without the fear of immediate regulatory intervention.
Implementation Timeline
The initiative remains a top priority for the SEC despite challenges caused by the ongoing government shutdown. Atkins expects the work on the proposal to be completed by the end of 2025 or in the first quarter of 2026.
He emphasized that the goal of the project is to bring innovation back to the United States and demonstrate that the regulator is open to dialogue with entrepreneurs.
"That's one of the top priorities to try to get that because I want to be welcoming to innovators and have them feel like they can do something here in the United States, so that they don't have to flee to some foreign jurisdiction," Atkins said.
He noted that the new approach aims to replace the “regulation by enforcement” practice previously used by the SEC under past administrations. The idea is to establish transparent rules and official procedures instead of relying on a series of letters and informal guidance, which the agency had followed in the past.
Impact of the Government Shutdown on the SEC’s Work
Atkins acknowledged that the ongoing federal government shutdown is slowing down the development of regulatory frameworks, including those related to the crypto market. Currently, the Commission is focused only on “mission-critical tasks,” while new initiatives have been temporarily put on hold.
He also highlighted the work of Congress on the GENIUS Act, the new law governing stablecoins, which represents the first significant legislative step for the U.S. crypto sector.
Although the SEC is not directly involved in implementing this law, the agency is closely monitoring its impact on the market structure.
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