The U.S. Securities and Exchange Commission (SEC) is charting a new course for crypto, exploring a conditional “innovation exemption” to encourage blockchain development and reduce regulatory friction.
⚖️ Atkins Leads With Pro-Innovation Stance
SEC Chair Paul Atkins, a former crypto lobbyist, announced during a June 3 roundtable that staff are working on a framework to provide temporary regulatory exemptions for qualifying crypto firms.
These exemptions could:
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Speed up deployment of onchain products
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Reduce the burden of outdated securities laws
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Foster compliance under clear, modern conditions
“An innovation exemption could help fulfill President Trump’s vision to make America the crypto capital of the planet,” said Atkins.
🧩 Legacy Rules vs. Onchain Realities
Atkins criticized the current SEC rulebook for being out of sync with blockchain innovation. Traditional regulations were built around issuers and intermediaries—not decentralized code.
“The drafters of these rules likely did not contemplate that self-executing software might displace such intermediaries,” he noted.
He has also directed staff to explore whether broader amendments to securities laws are necessary to accommodate DeFi and tokenized systems.
🔁 SEC Shifts Away From Enforcement-First Era
This announcement signals a clear departure from the Gensler era, where the SEC often relied on enforcement actions rather than formal policymaking to regulate crypto.
Under Atkins and acting chair Mark Uyeda, the SEC’s Crypto Task Force, launched in January, is steering policy through notice-and-comment rulemaking instead of lawsuits.
“The SEC will hone its crypto policies with input, not intimidation,” Atkins told the Senate.
Already, the agency has:
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Dropped enforcement cases tied to older crypto legal disputes
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Released guidance clarifying that most staking services are legal
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Begun outlining how federal securities laws apply to crypto
📅 What’s Next?
The SEC’s Crypto Task Force is expected to release its first major report in the coming months, which may detail:
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Rules for crypto exchanges and staking
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Clarity for token classifications
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Paths to safe innovation in DeFi
If implemented, the innovation exemption could mark the start of a new regulatory era, one that favors collaboration over confrontation.
For ongoing updates on crypto policy shifts, follow https://cryptodicenews.blog
