U.S. Regulation

Paul Atkins Pushes for SEC Crypto ‘Innovation Exemption’ by Year’s End

SEC Chair Paul Atkins said Tuesday that he aims to institute an “innovation exemption” for certain digital assets by year’s end, in the most tangible sign yet of how quickly the regulator’s aggressive pro-crypto push is taking shape. Atkins gave the timeline update this morning during an appearance on the Fox Business show “Mornings With Maria,” in which he also announced plans for the SEC to complete certain crypto rulemakings “in the coming months.”

In July, Atkins unveiled “Project Crypto”—an SEC initiative to dramatically lower regulatory burdens for the crypto industry and to accelerate the integration of digital assets with the traditional U.S. economy.  Teased elements of “Project Crypto” include exemptions for crypto transactions that would otherwise be subject to securities laws, and safe harbors for popular digital asset categories including ICOs, airdrops, and network rewards. 

It’s unclear which of those crypto-focused exemptions Atkins intends to implement at the SEC by the end of December. An SEC spokesperson did not immediately respond to Decrypt’s inquiry regarding Atkins’ comments Tuesday. Earlier this month the SEC released its latest rulemaking agenda, which appears poised to remake America’s crypto regulatory landscape. In the coming months, the agency will weigh whether to establish a new rulemaking regarding the offer and sale of crypto assets and certain related exemptions and safe harbors.

It will also consider rules that would impact how the agency interprets foundational New Deal-era financial laws, in the aim of loosening restrictions on crypto products. Such rules would, if enacted, amend the SEC’s longstanding policies related to regulating securities exchanges and securities dealers, in an effort to create more relaxed rules for crypto-related products. “I’m really very excited about this opportunity to make this industry in America stand on firm ground,” Atkins said Tuesday, “so that America can lead with innovation, as the president has called for.”
Terron Gold

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