The U.S. Securities and Exchange Commission (SEC) is preparing an “innovation exemption” to end years of regulatory pressure and bring digital asset innovation back to the country.
U.S. SEC Chair Paul Atkins announced at a legal event in New York that the agency aims to introduce its long-awaited “innovation exemption” by the end of this year or early 2026. Atkins noted that the government shutdown has slowed progress but emphasized that promoting innovation in digital assets remains the agency’s top priority.
Atkins called crypto the SEC’s “job one,” arguing that the past four years of regulatory repression pushed innovation overseas. The upcoming exemption seeks to reverse that trend and replace the previous “regulation by enforcement” model with a formal framework that encourages U.S.-based development.
Atkins also referenced the GENIUS Act, a stablecoin-focused legislative proposal gaining traction in Congress. While Blockchain Association CEO Summer Mersinger placed the odds of passage at around 51%, other industry figures noted that, even without immediate approval, the Act’s technical design could help accelerate real-world crypto adoption — citing Visa’s integration of stablecoins as an early example. The SEC’s initiative signals a renewed U.S. effort to reclaim leadership in digital asset regulation.
