SEC's Crypto Push: Modernizing Rules to Secure Global Leadership

The U.S. Securities and Exchange Commission (SEC) has announced plans to establish an Innovation Hub for Digital Assets by Q4 2025, as part of a broader agenda to modernize regulatory frameworks for the cryptocurrency sector. Under Chairman Paul Atkins, the agency is prioritizing innovation-friendly policies while balancing investor protections. The initiative, dubbed "Project Crypto," aims to streamline rules for trading, custody, and product development, positioning the U.S. as a global leader in digital asset innovationSEC’s Crypto Agenda 2025: New Rules for Digital Assets^[1].

Key elements of the SEC's agenda include proposals to permit cryptocurrency trading on national stock exchanges and alternative trading systems, a move that could significantly expand market access for digital assets. The agency also plans to revise financial responsibility rules for brokers and custody services, reducing compliance burdens for firms operating in the crypto spaceSEC’s Crypto Agenda 2025: New Rules for Digital Assets^[1]. Additionally, the SEC is modernizing the Investment Advisers Act of 1940 to adapt custody requirements for crypto firms, reflecting a shift away from overly burdensome pre-2025 regulationsSEC’s Crypto Agenda 2025: New Rules for Digital Assets^[1].

A central component of the agenda is the development of an "innovation exemption," which would allow both registered and non-registered entities to launch on-chain products without navigating outdated regulatory hurdles. This exemption, expected to be finalized by year-end, is designed to foster experimentation while maintaining legal claritySEC's Atkins Says Agency Pushing Toward 2025 Rules Allowing^[3]. The SEC has also issued informal guidance on topics such as memecoins and stablecoins, though formal rules will require commission-level approvalSEC's Atkins Says Agency Pushing Toward 2025 Rules Allowing^[3].

Collaboration with the Commodity Futures Trading Commission (CFTC) is a critical part of the strategy. In September 2025, the SEC and CFTC jointly clarified that regulated exchanges can list and trade spot crypto assets under existing law, removing uncertainty that had previously driven innovation offshore. This alignment signals a coordinated effort to create a stable regulatory environment for institutional participation and mainstream adoption.

The regulatory reforms are part of a broader political and economic shift under the Trump administration, which has emphasized deregulation to stimulate crypto activity. The SEC's efforts align with the President's Working Group on Digital Asset Markets, which advocates for interagency coordination to define clear boundaries between securities and commoditiesSEC's Atkins Says Agency Pushing Toward 2025 Rules Allowing^[3]. However, challenges remain, including congressional gridlock on comprehensive crypto legislation and the need for ongoing dialogue with industry stakeholders to balance innovation with risk mitigationSEC’s new crypto playbook: what Paul Atkins’ agenda …^[2].

Industry observers highlight the potential for the SEC's agenda to reshape global digital asset markets. By reducing barriers to entry and clarifying custody and trading rules, the U.S. could attract crypto firms that have historically moved operations to jurisdictions with less regulatory certainty. At the same time, the focus on innovation exemptions and flexible frameworks underscores a departure from the enforcement-heavy approach of previous administrationsSEC’s new crypto playbook: what Paul Atkins’ agenda …^[2].