SEC Eyes Game-Changing Crypto Exemption to Boost Innovation – USA to Become Crypto Hub?

The United States Securities and Exchange Commission (SEC) is preparing to introduce what could be one of the most significant shifts in crypto oversight to date.

Chairman Paul Atkins confirmed that by year-end the agency intends to roll out an “innovation exemption” designed to let crypto firms bring new products to market without immediately facing what he described as burdensome or incompatible regulatory requirements.

SEC Chair Paul Atkins Signals Crypto-Friendly Pivot With Innovation Exemption Plan

Speaking on Fox Business, Atkins said the goal is to provide “a stable platform upon which [firms] can introduce their products,” signaling a decisive pivot toward a friendlier stance on digital assets under the Trump administration.

Since President Donald Trump took office, the SEC has dropped several enforcement cases initiated during Gary Gensler’s tenure as chair, while forming a dedicated crypto task force to chart a new regulatory path.

The proposed exemption, still under development, would allow both registrants and non-registrants to quickly deploy blockchain-based services under conditional relief.

Atkins has repeatedly suggested that this measure could accelerate the rollout of on-chain financial products while the SEC works on broader, fit-for-purpose rules for digital assets.

During a roundtable at SEC headquarters in June, the chairman said the agency is considering a “blockchain relief framework” that would make it easier for innovators to experiment under regulatory oversight.

He framed the effort as part of President Donald Trump’s wider ambition to position the U.S. as the “crypto capital of the planet.”

The exemption, he said, is aimed at encouraging developers and entrepreneurs to innovate domestically rather than moving operations overseas.

Atkins also linked the initiative to broader goals for U.S. capital markets. On Tuesday, he noted that the number of publicly traded companies in the country has halved over the past three decades, adding that he wants to “make IPOs great again.”

He suggested that crypto-friendly reforms could help reinvigorate public markets by fostering a new wave of tokenized securities.

In July, Atkins told reporters that the SEC staff was evaluating frameworks to promote tokenization, including new trading methods and targeted relief for firms building tokenized securities ecosystems.

“If it can be tokenized, it will be tokenized,” he said, emphasizing that while the outcomes remain uncertain, the movement of assets on-chain is “inevitable.”

While acknowledging uncertainties, he has expressed optimism that the exemption and forthcoming rules will encourage developers and firms to innovate within the United States rather than abroad.

Lawmakers, Regulators Accelerate U.S. Bid to Become Global Crypto Hub

The SEC is accelerating efforts to define a regulatory framework for digital assets, signaling a break from its historic enforcement-first approach.

The move follows months of coordination with the Commodity Futures Trading Commission (CFTC), which in August launched a “crypto sprint” to advance President Donald Trump’s call to make America the “crypto capital of the world.”

The CFTC has already cleared 24/7 trading and perpetual derivatives on registered markets while hosting its first-ever Crypto CEO Forum.

SEC Chair Paul Atkins has echoed this acceleration through “Project Crypto,” an initiative to modernize securities laws and establish clearer rules for token classification, custody, and trading.

Atkins has framed the exemption as a way to prevent innovation from drifting offshore.

Speaking at the America First Policy Institute in early August, he declared, “The SEC will not stand idly by and watch innovations develop overseas while our capital markets remain stagnant.”

The exemption would create limited regulatory relief for emerging projects, allowing experimentation under defined conditions while ensuring consumer protections.

The initiative builds on momentum from Congress. In July, Trump signed the GENIUS Act, a law viewed as a landmark step toward crypto clarity.

Atkins later described its passage as a “seminal moment” for lawmakers, paving the way for streamlined compliance and reduced legal uncertainty.

Meanwhile, the SEC’s “Crypto Task Force” has been traveling nationwide, holding roundtables in Chicago, Dallas, Boston, and Berkeley to gather feedback from startups and underrepresented voices.

Commissioner Hester Peirce, who spearheads the effort, said the goal is to create rules that balance innovation with accountability.

Lawmakers are also pressing the SEC to implement Trump’s order opening retirement markets to crypto, further underscoring Washington’s new appetite for digital asset integration.