SEC to create incentives for crypto projects by the end of the year

Key points:

• SEC Chairman Paul Atkins announced the development of an “innovation exemption” in the cryptocurrency sector.
• The regulator is trying to create a solid foundation for digital assets in the US, following Donald Trump’s directives aimed at expanding control over this sector.

The US Securities and Exchange Commission (SEC) is working on creating an “innovation exemption” that will simplify the approval process for digital asset products by the end of the year. SEC Chairman Paul Atkins announced this.

In an interview with Fox Business, Atkins noted that the SEC will be working on “rulemaking in the coming months.” The agency is developing a package of “innovation exemptions” that will remove bureaucratic barriers for crypto projects. The reforms will cover asset tokenization, DeFi protocols, and institutional investments.

According to Atkins, “innovation exemptions” will provide crypto companies with temporary relief from old securities rules to launch new products under lighter oversight while the SEC develops new rules.

Regulatory steps taken

Atkins’ rhetoric in support of digital assets 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) said they were inviting already registered companies to continue working with cryptocurrencies and that they should contact them with any questions about how to proceed.

The SEC also published an agenda reflecting planned rules for the offering and sale of cryptocurrency securities, including exemptions and “safe harbors.” Atkins noted:

“We’re trying to give the marketplace some kind of stable platform upon which they can introduce new products. We’ll be doing rulemaking in the coming months. We’re looking for an innovation exemption to try to get that in place by year end.”

Last week, the agency allowed exchanges to list exchange-traded products (ETPs) containing spot commodities, including cryptocurrencies, without the need for individual review by the agency. This is a common listing standard that will lower barriers for new products.