Atkins Promises Crypto Framework by February
SEC Chair Paul Atkins told CNBC on Tuesday that the agency is back on track to release its innovation exemption for cryptocurrency firms after the recent government shutdown pushed timelines back. Speaking on Squawk Box, Atkins said he expects the exemption to be finalized "in a month or so," which would give digital asset companies something they've been demanding for years: a clear legal path to launch on-chain products without getting tangled in securities registration requirements.
The exemption is meant to reverse what Atkins characterized as years of regulatory hostility toward the crypto industry. He emphasized that the SEC has the authority to move forward on its own while Congress continues debating broader crypto legislation, and that the agency is providing technical assistance to lawmakers to make sure any bills they pass actually fit with existing federal statutes.
Atkins framed the initiative as essential for helping the U.S. catch up after a long period where blockchain innovation felt unwelcome domestically.
Building on Project Crypto
The upcoming exemption grows out of Project Crypto, an initiative Atkins launched earlier this year to reduce regulatory friction for digital asset companies. That project has been exploring ways to ease rules around token launches, airdrops, network rewards, and other activities that currently bump up against securities law constraints.
Earlier this year, Atkins outlined plans to create safe harbors for certain digital asset transactions and to modernize how the SEC interprets New Deal-era financial laws so they work better with decentralized platforms. He previously indicated that the SEC plans to complete several crypto-related rulemakings over the coming months.
His comments come on the heels of the agency's approval of generic listing standards that allow exchanges like Nasdaq and Cboe to list commodity-based trust products without needing a separate Commission order each time. Analysts have suggested this shift could speed up listings of cryptocurrency exchange-traded products by streamlining the approval process.
Exchanges Push Back on Relaxed Rules
Not everyone is thrilled about the SEC's more permissive approach. Major stock exchanges have raised concerns about loosening rules for digital asset platforms, pointing to oversight gaps and risks related to tokenized securities and cross-border trading access.
Atkins acknowledged the competing pressures but argued that the exemption is critical to U.S. competitiveness, especially given how quickly other countries are rolling out their own crypto regulatory frameworks and how fast tokenized markets are growing overseas.
What This Means for the Industry
The exemption is expected to give blockchain developers and trading platforms the legal clarity they need to deploy on-chain products without facing the same registration burdens as traditional securities issuers. Industry attorneys say the move could significantly expand institutional experimentation and help narrow the regulatory gap between the U.S. and jurisdictions in Asia and the Middle East that have already embraced digital assets.
Atkins made it clear that the SEC's goal is to position the United States as a leader in digital asset innovation, not a country that falls behind.
"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.
