Chair Paul Atkins says regulatory carve-out could arrive by year’s end
The US Securities and Exchange Commission (SEC) is preparing an “innovation exemption” that could allow digital asset companies to launch products without being hindered by outdated securities rules, according to SEC Chair Paul Atkins.
Fast-track pathway for crypto products
Speaking in an interview on Fox Business, Atkins confirmed that the SEC is working on new rulemaking in the coming months. “We’re looking for an innovation exemption — to try to get that in place by year end,” he said.
The exemption would act as a temporary regulatory carve-out, enabling crypto firms to roll out products under lighter oversight while the SEC builds more tailored frameworks. Analysts suggest this could dramatically speed up the introduction of exchange-traded products (ETPs) and other blockchain-based financial instruments.
New crypto ETPs gaining traction
Atkins’ remarks came just days after the launch of the first multi-asset crypto ETP in the United States, which provides investors exposure to Bitcoin, Ether, XRP, Solana, and Cardano. The fund was approved under the SEC’s recently updated Rule 6c-11 generic listing standards, which are designed to streamline approval timelines for ETFs.
“It’s not just an ad hoc type of approach,” Atkins explained. “We’re trying to give the marketplace some kind of stable platform upon which they can introduce new products.”
A shift in SEC stance toward digital assets
Atkins, who was sworn in as chair in April, has consistently voiced support for blockchain innovation. In July, he launched Project Crypto, an initiative aimed at updating securities regulations to align with the digital economy and help “enable America’s financial markets to move on-chain.”
He has also taken a markedly different stance from his predecessor, Gary Gensler. While Gensler argued that most cryptocurrencies fell under the securities definition via the Howey test, Atkins said in August that “very few tokens are securities” and emphasized that classification depends on the broader package and how tokens are marketed.
If enacted, the innovation exemption could ease compliance burdens and encourage faster institutional adoption of digital asset products. Industry participants see it as a potential turning point in US crypto regulation, signaling a move toward clarity and growth rather than enforcement-first approaches.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.