SEC Pivots to Innovation, Eases Crypto Rules for Clarity and Growth

The U.S. Securities and Exchange Commission (SEC) has outlined a regulatory agenda aimed at overhauling cryptocurrency policies, a shift widely seen as a departure from previous administration approaches. The agenda includes the proposal of new rules for digital asset sales, potential amendments to facilitate crypto trading on national exchanges, and efforts to reduce compliance burdens for public companies. This agenda aligns with broader goals of supporting innovation, market efficiency, and investor protection while streamlining regulatory clarity for the digital asset industry [1].

One of the central initiatives involves the potential introduction of exemptions and safe harbors for the offer and sale of digital assets. The SEC also emphasized its intent to clarify how its broker-dealer rules apply to crypto assets, a move expected to bring legal certainty to market participants. In addition, the SEC has signaled its openness to amending rules to allow crypto trading on national securities exchanges and alternative trading systems, a development that could significantly integrate digital assets into traditional financial frameworks [1].

This regulatory shift is also supported by a joint staff statement from the SEC and the Commodity Futures Trading Commission (CFTC) under their respective initiatives—Project Crypto and the CFTC’s Crypto Sprint. The joint statement indicates that current laws do not prohibit registered exchanges from facilitating the trading of spot crypto asset products. The collaboration aims to promote trading venue choice and optionality for market participants by enabling clearer regulatory paths for the listing and trading of leveraged, margined, or financed spot retail commodity transactions on digital assets [2].

The agenda reflects a broader effort to foster a more supportive regulatory environment for the crypto industry, particularly in contrast to the previous administration's enforcement-heavy approach. Under SEC Chair Paul Atkins, the agency has dropped several high-profile cases initiated by the Biden-era SEC, including lawsuits against exchanges like Coinbase and Binance. This shift underscores a new strategic focus on innovation and capital formation while ensuring investor safeguards [1].

The agenda also includes a proposal for the "rationalization" of disclosures and a reduction in compliance burdens for public companies regarding shareholder proposals. In a related move, the SEC has signaled its intent to reassess the Consolidated Audit Trail (CAT), particularly in response to concerns over escalating costs and data storage risks. These initiatives aim to create a regulatory environment that is both effective and tailored to the evolving financial landscape [1].

The shift in U.S. crypto regulation is part of a larger global trend. While the European Union has implemented comprehensive regulations under its Markets in Crypto-Assets (MiCA) framework, the U.S. approach appears to be more selective, focusing primarily on stablecoins. The recently enacted GENIUS Act in the U.S. provides a specific regulatory structure for payment stablecoins, emphasizing reserve requirements and transparency, while other crypto assets remain subject to older securities and commodities laws [3]. This contrasts with the UAE’s multi-layered regulatory system and the EU’s single, broad regulatory framework aimed at fostering innovation and investor protection.

Source:

[1] U.S. SEC unveils agenda to revamp crypto policies, ease Wall Street rules (https://www.reuters.com/legal/government/us-sec-unveils-agenda-revamp-crypto-policies-ease-wall-street-rules-2025-09-04/)

[2] SEC-CFTC Joint Staff Statement (Project Crypto) (https://www.sec.gov/newsroom/speeches-statements/sec-cftc-project-crypto-090225)

[3] Crypto Rules in Europe vs. the US: Does Your Stablecoin Need a Passport? (https://finance.yahoo.com/news/crypto-rules-europe-vs-us-184431208.html)