Paul Atkins, Chair of the U.S. Securities and Exchange Commission (SEC), has revealed that the agency is nearing completion of a new regulatory framework targeting the cryptocurrency industry. Speaking at an event in Nashville, Atkins announced that this regulatory draft—informally dubbed “regulation crypto”—has been forwarded to the White House Office of Information and Regulatory Affairs. This step signals that the proposal is in its last phase before being made public.
Core issues on the SEC’s agenda
Atkins emphasized that the new framework focuses primarily on key areas such as fundraising under the 1933 Securities Act and exemptions for startups. According to the information he provided, the rules are designed to clarify which types of crypto transactions would fall under securities regulations and which would remain outside this scope, aiming to eliminate existing uncertainties within the industry.
He also pointed out that the long-anticipated “innovation exemption” is set to be announced soon. This specific exemption seeks to encourage the market entry of new ventures without placing established players at a disadvantage, attempting to strike a balance between fostering innovation and maintaining competitive fairness.
Atkins explained that the innovation exemption would apply equally to both new entrants and existing market participants, with the broader goal of enabling the industry to experiment safely within a defined framework.
He further underlined that, rather than functioning as a strict regulatory rule, the current proposal will initially serve as a flexible pilot period. Industry feedback and practical outcomes will play a critical role in shaping the final approach, reflecting an effort to remain responsive to the evolving crypto landscape.
Congressional relations and the political process
Discussing the interplay with Congress, Atkins noted that the SEC’s regulatory actions are proceeding independently of legislative developments on Capitol Hill. Referencing the upcoming elections, he remarked that the regulatory timeline would persist despite the shifting political dynamics in Congress, suggesting the process is insulated from immediate partisan influences.
The SEC Chair said that having industry representatives actively participate in elections can help reduce future uncertainties in crypto regulation.
By citing Senator Bernie Moreno as an example, Atkins indicated that establishing a Congressional structure aligned with industry interests has led to positive outcomes in past electoral cycles. This, he noted, serves as a blueprint for fostering constructive policy development for the crypto sector.
Atkins went on to state that deeper engagement by industry stakeholders throughout the election period could help prevent sudden policy shifts in the future, advocating for sustained dialogue between regulators, lawmakers, and the market itself.
With the SEC’s latest regulatory framework, the expectation is that crypto asset markets will experience greater transparency and clarity, providing both established companies and newcomers with more certainty as they operate, invest, and innovate within the U.S. marketplace.
