SEC Eases Crypto Rules to Spur IPOs, Investor Renewal

The U.S. Securities and Exchange Commission (SEC) is advancing a regulatory initiative to streamline the launch of digital asset products through a proposed "innovation exemption," according to statements from SEC Chair Paul Atkins. The exemption aims to provide temporary relief from existing securities rules, enabling crypto firms to introduce new products under lighter oversight while the SEC develops tailored regulations. This move aligns with broader efforts to modernize regulatory frameworks for digital assets, as outlined in the agency’s "Project Crypto" initiative launched in July 2025 SEC's Atkins Says Agency Pushing Toward 2025 Rules Allowing^[1].

Atkins emphasized that the innovation exemption is intended to create a "stable platform" for crypto firms to innovate without being constrained by outdated requirements. The SEC plans to finalize the exemption by year-end, with formal rules expected to be elaborated in 2026 SEC Plans Innovation Exemption to Speed Crypto Launches^[2]. The exemption would function as a regulatory carve-out, allowing firms to bypass certain compliance burdens for novel products while ensuring investor protections remain intact. This approach marks a departure from the agency’s previous enforcement-heavy stance under former Chair Gary Gensler, reflecting a shift toward fostering innovation while maintaining market integrity US SEC eyes ‘innovation exemption’ to fast-track digital asset …^[3].

The SEC’s efforts are part of a coordinated strategy with the Commodity Futures Trading Commission (CFTC) to harmonize regulatory frameworks. A joint roundtable scheduled for September 29 will address overlapping oversight responsibilities, aiming to clarify distinctions between crypto securities, commodities, and other asset classes SEC Plans ‘Innovation Exemption’ to Streamline Crypto Product …^[4]. The agency has also introduced generic listing standards for exchange-traded products (ETPs) holding cryptocurrencies, reducing approval timelines and removing barriers for new offerings. These changes follow the approval of the first multi-asset crypto ETP in the U.S., which leveraged the newly announced Rule 6c-11 SEC Chair Paul Atkins Says Crypto 'Innovation Exemption' Coming …^[5].

Atkins linked the innovation exemption to a broader goal of revitalizing U.S. public markets, which have seen a decline in listed companies over the past three decades. By easing regulatory hurdles for crypto firms, the SEC aims to encourage more initial public offerings (IPOs) and reinvigorate investor participation. The chair also highlighted concerns about global competition, noting that the U.S. risks falling behind in digital finance if it does not adapt quickly The Rate Cut Trump Wanted Is Here — And Fed Hints At More^[6].

The proposed exemption has drawn attention from Congress, where bipartisan legislation—similar to the House’s Digital Asset Market Clarity Act—is under consideration. Advocates aim for committee action by late October, with Atkins expressing support for legislative clarity while maintaining that the SEC can act independently on policy matters Fed Cuts Rates for First Time in 2025. What's …^[7]. The agency’s agenda also includes rulemaking on the offer and sale of crypto assets, including exemptions and safe harbors for initial coin offerings (ICOs), airdrops, and network rewards .