SEC Plans Conditional Rule Exemption for Crypto Firms
The U.S. Securities and Exchange Commission (SEC) will introduce a conditional rule exemption for crypto companies by the end of 2025. SEC Chairman Paul Atkins revealed this plan as a shift from strict enforcement to more flexible regulation. The exemption aims to give digital asset firms more freedom to launch new products without full compliance hurdles.
Called the “innovation exemption,” the proposal would let certain crypto projects bypass SEC rules that Atkins calls “incompatible or burdensome” for new technologies. This move aligns with former President Trump’s goal to make the U.S. a leader in crypto development. It also marks a change from the aggressive enforcement approach under former SEC Chair Gary Gensler.
Efforts to Support Crypto Innovation and Market Growth
The SEC is working to create a “stable platform” for crypto product launches while developing updated rules for digital assets. Last week, Atkins highlighted the need to revitalize U.S. capital markets, noting a decline in publicly traded companies over 30 years. “I want to make IPOs great again,” he said, echoing Trump-era messaging.
The exemption proposal follows recent enforcement rollbacks, including dismissals of lawsuits filed during Gensler’s tenure. It also coincides with the creation of an internal crypto task force. This group will design a regulatory framework that supports innovation in the crypto space.
Timeline and Political Context
Details on the exemption are limited, but the SEC aims to finalize the rule by the end of 2025. This timeline matches Trump’s broader efforts to boost the U.S. crypto industry. Reports have linked Trump to easing terms in Binance’s $4.3 billion plea deal amid scrutiny over his family’s ties to the exchange.
