SEC Chair Paul Atkins on Tuesday said the agency expects to release its long-planned innovation exemption for cryptocurrency firms within the next month after delays from the U.S. government shutdown.
Atkins Targets January Rollout For Crypto Innovation Framework
Atkins said in an interview on CNBC’s Squawk Box that the SEC has resumed work on an innovation exemption designed to give digital asset companies a legally defined pathway to launch on-chain products.
He said the exemption should be finalized "in a month or so," framing it as a key step in reversing years of regulatory resistance toward digital assets.
Paul noted that the agency is still on track and has sufficient authority to advance policy while Congress debates broader legislation.
The agency is providing Congress with technical assistance to ensure proposed bills align with other federal statutes, he added.
He also emphasized that the exemption aims to help the U.S. embrace blockchain innovation after a long period in which the industry felt pushed aside.
Exemption Follows Earlier Push From Project Crypto
The forthcoming exemption builds on Project Crypto, an initiative Atkins unveiled earlier this year to reduce regulatory friction for digital asset companies.
The project has explored easing rules for token launches, airdrops, network rewards, and other activities that currently face securities-law constraints.
Earlier this year, Atkins outlined plans to create safe harbors for certain digital asset transactions and to modernize interpretations of New Deal-era financial laws to accommodate decentralized platforms.
He previously said the SEC intends to complete several crypto-related rulemakings in the coming months.
His comments follow the agency's approval of generic listing standards allowing exchanges like Nasdaq and Cboe to list commodity-based trust products without a separate Commission order.
Analysts argued the shift could accelerate listings of cryptocurrency exchange-traded products by streamlining regulatory approval.
Read Also: SEC Considers Regulatory Exemptions For DeFi Platforms: A Bold Leap Forward Or A Risky Gamble?
Major Exchanges Express Concerns Over Looser Rules
While the SEC is preparing to formalize a more permissive framework, major stock exchanges have raised concerns about easing rules for digital asset platforms.
They have pointed to gaps in oversight, as well as risks tied to tokenized securities and cross-border trading access.
Atkins acknowledged the competing pressures but framed the exemption as vital to U.S. competitiveness, noting the global acceleration of crypto regulatory frameworks and the rapid growth of tokenized markets abroad.
Why It Matters For Digital Asset Firms
The exemption is expected to give blockchain developers and trading platforms legal clarity to deploy on-chain products without facing the same registration burdens as traditional securities issuers.
Industry attorneys say the move could materially expand institutional experimentation and narrow the regulatory gap between the U.S. and jurisdictions in Asia and the Middle East.
Atkins said the SEC's goal is to position the United States as a center for digital asset innovation rather than a laggard.
"We will be able to forge forward with a crypto area and make sure that we are able to embrace this new area of innovation," he told CNBC.
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