Key Insights:
- Crypto news moved today as SEC Chair Paul Atkins told CNBC on December 2 that the agency hoped to release an innovation exemption for crypto companies within a month.
- The framework would give crypto and tokenization projects conditional relief from certain securities rules, allowing them to test business models under supervision.
- The tokenized asset market stood at $18.4 billion, with tokenized US treasuries representing $9.2 billion.
SEC Chair Paul Atkins confirmed the agency planned to release an innovation exemption framework for crypto companies within the next month, setting implementation for January 2026. The announcement came during a CNBC interview on December 2.
Crypto News: Atkins Confirmed Month Timeline Despite Shutdown
Atkins told CNBC that the SEC hoped to get the innovation exemption “out in a month or so,” but noted that the government shutdown had impeded progress. The chair said the agency had enough authority to drive forward.
Atkins framed the move as embracing an area the US had pushed back against for too long. The SEC worked with Congress on technical assistance but planned to proceed under existing authority.
The innovation exemption is a framework that would grant crypto and tokenization projects conditional relief from certain securities rules.
Companies could test business models under supervision instead of full broker-dealer or exchange registration from day one.
In his July 31 speech “American Leadership in the Digital Finance Revolution,” Atkins described the exemption as a way for firms to quickly go to market with models that did not fit existing rules while meeting investor protection conditions.
Sidley’s breakdown of Project Crypto showed the exemption as part of a broader package, including token taxonomy and Regulation Crypto.
Companies could test crypto models and report to the SEC periodically, rather than complying with every rule immediately.
Reports added that the exemption targets digital asset businesses wanting to launch token offerings, on-chain products, DeFi services, and tokenized securities without fitting into 1930s-era categories on day one.
What Framework Covers for Crypto News and Assets
The innovation exemption aimed at activities including tokenized stocks, DeFi services, and on-chain products.
For tokenized stocks, the framework would let unregistered crypto platforms offer blockchain versions of listed equities without full broker-dealer compliance under SEC-set conditions.
The tokenized asset market reached $18.4 billion, showing substantial growth. The tokenized US Treasuries accounted for the largest segment at $9.2 billion. Tokenized commodities stood at $3.6 billion.
Tokenized stocks accounted for $656 million in market capitalization, making them a strategically important category.
The exemption functions as a supervised sandbox. Companies meeting guardrails could operate sooner, and the SEC gained data and oversight.
The World Federation of Exchanges warned in a submission that broad exemptions could undermine investor protection and must be narrowly tailored with investor and transaction limits.
Reports noted that exchanges worried crypto firms would bypass regulatory principles governing equity markets for decades.
Likely conditions included limited duration, specific activity types, caps on investor exposure, ongoing SEC reporting, and no waiver of anti-fraud obligations.
Impact on Crypto Regulation and Market
The innovation exemption represented a major pivot from the Gensler-era enforcement-first approach.
Supporters pitched the exemption as a way to break a regulatory logjam. Instead of waiting years for rules or risking retroactive enforcement, projects got a clear opt-in path to experiment under supervision.
Critics, led by the World Federation of Exchanges, worried about an uneven playing field. Tokenized stocks might dodge broker-dealer and exchange rules that incumbents followed, potentially confusing investors about protections.
For crypto companies, the innovation exemption would be a discretionary gateway to operate in the US, with clearer boundaries and lower upfront compliance requirements in exchange for tailored conditions.
Additionally, the framework remained a proposal until the SEC published the rule text.
The SEC moved toward implementing the innovation exemption by January 2026, creating conditional pathways for crypto companies while the $18.4 billion tokenized asset market prepared for expanded regulatory clarity under the Atkins framework.
Source: https://www.thecoinrepublic.com/2025/12/02/crypto-news-innovation-exemption-comes-in-january-2026-to-greenlight-new-products-from-crypto-companies/
