SEC Chair Says Crypto Innovation Exemption Near Release

• Paul Atkins said the SEC plans to issue a crypto innovation exemption within weeks, moving ahead without waiting for new legislation.

• The exemption is part of Project Crypto, aimed at reducing regulatory friction and clarifying rules for tokens and on-chain activity.

• Atkins said the policy will let crypto firms test new models under guardrails as the SEC modernizes digital asset oversight.

U.S. Securities and Exchange Commission Chair Paul Atkins said the agency will soon release a crypto “innovation exemption” policy. He shared the update during a CNBC interview on December 2 in the United States. Atkins said the SEC has sufficient authority to act, explaining the policy moved forward after delays caused by a government shutdown.

What the SEC Plans to Release

According to CNBC, Atkins said the exemption could be issued within about a month. He explained that the SEC resumed work once the government shutdown ended. Notably, Atkins said the agency does not need to wait for Congress to finalize legislation.

He added that the SEC continues to provide technical assistance to lawmakers. That support aims to ensure proposed crypto legislation aligns with existing federal laws. However, Atkins said the agency can still advance regulatory action independently.

The innovation exemption would allow certain crypto activities to operate under defined conditions. Atkins described it as a way to move crypto regulation forward using existing authority.

How Project Crypto Fits the Plan

The exemption forms a key part of the SEC’s broader Project Crypto initiative. Atkins introduced Project Crypto earlier this year to reduce regulatory friction for blockchain companies. The effort focuses on clearer rules for token launches and on-chain activity.

Earlier in 2025, the SEC approved in-kind creations for crypto exchange-traded products. The agency also issued a no-action letter for DePIN token distributions in September. These steps followed Atkins’ plan to modernize securities rules for digital assets.

In November, Atkins outlined plans for token classification guidance. He also referenced a future “Regulation Crypto” proposal expected in 2026.

Why Timing Matters for Crypto Firms

Atkins said the exemption aims to address years of regulatory pushback against crypto. He noted that the SEC wants to support innovation while maintaining oversight. The policy would allow companies to test new models under defined guardrails.

Market participants are closely watching the timeline. The exemption could offer clearer pathways for startups and established firms. Meanwhile, Congress continues debating the Digital Asset Market Structure bill, known as the CLARITY Act.

Atkins told CNBC the SEC remains focused on moving forward. He said the agency wants rules that help the crypto sector operate within U.S. markets.