SEC to ease crypto regulation with innovation exemption
The US Securities and Exchange Commission (SEC) is preparing to introduce an “innovation exemption” aimed at fast-tracking approval for digital-asset products. SEC Chair Paul Atkins revealed the initiative during a Fox Business interview on Tuesday, saying the agency is working on new rulemaking that could be ready by the end of the year.
“We’re looking for an innovation exemption — to try to get that in place by year end,” Atkins said.
The exemption would act as a regulatory carve-out, allowing crypto firms to bring new products to market without being constrained by outdated securities rules. It would offer temporary relief while the SEC develops tailored regulations.
New crypto ETP highlights regulatory shift
Atkins’ comments came in response to the launch of the first multi-asset crypto exchange-traded product (ETP) in the US. The fund, launched by Grayscale, provides exposure to Bitcoin (BTC), Ether (ETH), XRP, Solana (SOL), and Cardano (ADA).
The ETP was introduced under the SEC’s recently announced generic listing standards, which simplify approval for ETFs under Rule 6c-11. Atkins said the move was a step toward building a “stable platform” for new digital asset products.
Atkins pushes Project Crypto
Since taking office in April, Atkins has consistently advocated for policies that support innovation in financial markets. In July, he launched “Project Crypto,” a program to modernize securities rules for digital assets and help transition US markets onto blockchain infrastructure.
At the Wyoming Blockchain Symposium in August, Atkins emphasized that only a small share of tokens should be considered securities. His stance contrasts with that of his predecessor, Gary Gensler, who argued most tokens fall under securities law using the Howey test.
