SEC Pushes Bold Pro-Crypto Agenda
The U.S. Securities and Exchange Commission (SEC) is gearing up for its most ambitious pro-crypto move yet. Chair Paul Atkins announced Tuesday that the agency is preparing an “innovation exemption” to loosen restrictions on certain digital assets by year’s end.
Speaking on Fox Business’ Mornings With Maria, Atkins said the SEC will deliver crypto-focused rulemakings “in the coming months”, giving the industry its clearest timeline yet for regulatory relief.
This builds on the SEC’s “Project Crypto”, unveiled in July, which aims to dramatically reduce regulatory barriers and accelerate the integration of digital assets with the U.S. financial system.
Exemptions for ICOs, Airdrops, and Network Rewards
One of the most closely watched elements of Project Crypto is its potential to carve out safe harbors for some of the industry’s most important mechanisms. Atkins has previously teased exemptions for ICOs, airdrops, and network rewards, transactions that typically fall under securities scrutiny.
It remains unclear which of these exemptions will be rolled out first, or how broadly they will apply. An SEC spokesperson declined to provide additional detail on the chair’s comments.
Rulemaking Agenda Could Rewrite Old Financial Laws
Earlier this month, the SEC released its latest rulemaking agenda, signaling sweeping changes. Among the proposals:
- A new rule on crypto asset sales and exemptions.
- Safe harbors to encourage blockchain development without fear of enforcement.
- Updates to New Deal-era financial laws that currently underpin securities regulation.
If enacted, these changes would ease restrictions on exchanges and dealers, giving crypto products a faster path to mainstream adoption.
Industry observers note that this would represent the most significant regulatory pivot since the SEC began targeting ICOs aggressively back in 2017.
A Race Against the Clock
Atkins has set a deadline of December 2025 for rolling out the first wave of exemptions. That puts pressure on the SEC to balance regulatory clarity with investor protection at a time when digital assets are moving deeper into U.S. retirement accounts, ETFs, and payment systems.
The Commission is also preparing to weigh rules around stablecoins and tokenized securities, areas already being prioritized by the Trump administration.
America’s Shot at Crypto Leadership
For Atkins, the stakes are clear. “America can lead with innovation,” he said, aligning his agenda with President Donald Trump’s pro-crypto economic strategy.
The industry has already cheered the SEC’s recent accelerated ETF approvals as proof of its new approach. If the promised innovation exemption materializes, it could give the U.S. a decisive edge over the EU and Asia in setting global crypto standards.
But critics warn that too much leniency could invite fraud and speculation, repeating the mistakes of past boom-and-bust cycles. The final shape of the exemption will determine whether it becomes a launchpad for innovation—or another regulatory loophole.
