The U.S. Securities and Exchange Commission (SEC) plans to introduce a conditional rule exemption for crypto firms by the end of 2025, signaling a shift away from enforcement-first policies. The move, revealed by SEC Chair Paul Atkins, is part of a broader push to give digital asset companies more regulatory breathing room to launch new products without clearing the traditional compliance gauntlet.
Dubbed an “innovation exemption,” the proposal would allow certain crypto projects to bypass existing SEC rules that Atkins has described as “incompatible or burdensome” for emerging technologies. The plan aligns with the U.S. President Donald Trump’s stated goal of establishing the U.S. as a leader in crypto development and signals a departure from the aggressive enforcement strategy led by former SEC Chair Gary Gensler.
SEC rollback clears path for pro-crypto reset
The agency is working to provide a “stable platform” for crypto product launches, while also advancing efforts to establish new regulatory rules for digital assets. A week ago, he emphasized the need to revitalize U.S. capital markets, pointing to a sharp decline in publicly traded companies over the past 30 years. “I want to make IPOs great again,” Atkins said, echoing Trump’s familiar political messaging.
The exemption proposal follows a series of enforcement reversals at the Commission, including the dismissal of several lawsuits initiated under Gary Gensler’s leadership. It coincides with the formation of an internal crypto task force charged with developing a regulatory structure that keeps pace with innovation.
While specific details remain scarce, the SEC aims to finalize the rule by year’s end, a timeline that aligns with President Trump’s broader efforts to position the U.S. as a hub for crypto, including his reported involvement in easing terms of Binance’s $4.3 billion plea agreement amid scrutiny over ties between his family and the exchange.
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