SEC to Launch “Innovation Exemption” Allowing Faster Crypto Product Releases by Year-End

SEC to introduce innovation exemption by Dec 2025 to speed crypto product launches.

Exemption is part of Project Crypto aimed at modernizing outdated securities rules.

SEC and CFTC plan joint roundtable to align crypto regulations for market consistency.

The U.S. Securities and Exchange Commission is preparing to launch an “innovation exemption” for crypto firms by year-end, Chair Paul Atkins confirmed. The exemption would allow digital asset companies to release products more quickly, operating under temporary relief from older rules while the SEC develops clearer regulations for the sector.

Innovation Exemption and Project Crypto

The U.S. Securities and Exchange Commission will introduce an innovation exemption designed to ease crypto product launches. Chair Paul Atkins confirmed the plan during a Fox Business interview, stating that the SEC aims to complete the exemption before December 2025.

The new framework would allow firms to release products under reduced regulatory pressure while the SEC drafts sector-specific rules. This carve-out is part of Project Crypto, a program launched in July 2025 to modernize securities laws for digital assets. The initiative seeks to address outdated requirements that apply to legacy markets but delay blockchain services.

Atkins said the goal is to provide a “stable platform” for businesses to introduce products. The exemption may cover token sales, staking, and multi-asset trading applications, giving firms temporary flexibility. The SEC has also included crypto-related proposals in its Spring 2025 rule list, confirming a broader regulatory agenda.

Policy Direction and Regulatory Coordination

The exemption reflects a shift away from the enforcement-heavy approach under former SEC leadership. Instead of pursuing frequent legal actions, the agency plans to support compliant innovation while retaining oversight powers. Atkins also said the SEC is collaborating with Congress on market structure bills to clarify securities law for crypto.

Coordination with the Commodity Futures Trading Commission will also be a focus, with a joint roundtable scheduled for September 29. Both agencies aim to harmonize their rules to ensure consistency for firms operating in the digital asset sector.

Atkins highlighted global policy comparisons, noting that Europe’s MiCA framework offers lessons for international cooperation. The SEC’s innovation exemption is expected to strengthen the U.S. role in the competitive global crypto landscape, while ensuring measures remain in place to prevent fraud and market manipulation.

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