What happened?
SEC Chair Paul Atkins said a formal “innovation exemption” to support crypto firms could be finalized by the end of the year, and he called it a top priority despite the government shutdown. The exemption would give companies a structured window to experiment with blockchain products domestically while the SEC finishes broader digital asset rules. Atkins framed the plan as a way to keep innovation in the U.S. so firms don’t flee to other countries.
Who does this affect?
This affects crypto startups, developers, exchanges and firms building digital-asset infrastructure that need regulatory certainty to launch and scale in the U.S. It also matters to institutional investors, service providers and legal teams who make decisions about where to base operations and offer products. Indirectly, regulators, overseas competitors and retail users could see changes as companies choose to stay, return, or expand in the U.S. market.
Why does this matter?
If adopted, the exemption could cut regulatory uncertainty and speed up the rollout of on-chain financial products, drawing more capital and talent back to the U.S. That could boost liquidity, innovation and valuations in parts of crypto while raising competition and potential short-term volatility as new products hit the market. Overall, it could help position the U.S. as a more attractive crypto hub and shift where investment and activity concentrate globally.