Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnAISquareMore
Paul Atkins Plans to Introduce SEC Innovation Exemptions This Year

Paul Atkins Plans to Introduce SEC Innovation Exemptions This Year

BeInCryptoBeInCrypto2025/10/07 14:48
By:Landon Manning

SEC Chair Paul Atkins is pushing for innovation exemptions to ease regulations on Web3 firms, signaling a major shift in US crypto policy. While the proposal could boost innovation, it also raises concerns about financial risk and regulatory integrity.

At a recent event in Manhattan, SEC Chair Paul Atkins vowed to deliver innovation exemptions by the end of the year. This would give Web3 firms explicit permission to ignore certain regulations.

The Commission can’t make any progress on the effort right now, due to the government shutdown. It will need to carefully construct the exemptions’ language to retain crucial fiscal guardrails and prevent instability.

Innovation Exemptions Explained

Since Paul Atkins took over at the SEC in April, he’s been revolutionizing US crypto regulation in several key ways. Between his involvement in market structure legislation and moves to approve altcoin ETFs, he’s made a lot of progress, but there’s one immediate goal that remains out of reach.

For over a month, Atkins has been describing an “innovation exemption” for crypto firms. The rules are a little unclear, but they would essentially allow Web3 businesses to ignore existing rules.

The CFTC already experimented with this, declaring that it will take no action against Polymarket for previous violations. This allowed the platform to return to the US.

Atkins has repeatedly commented on the innovation exemption, claiming that he hopes to bring it about soon. Today, he made a public appearance with CFTC Commissioner Caroline Pham, where he explicitly stated that this rule change should take effect before 2026:

“I have confidence [that the SEC] will be able to do it. [The exemption] is one of the top priorities…because I want to be welcoming to innovators and have them feel like they can do something here in the United States,” Atkins reportedly told the attendees.

Is This a Good Idea?

He also addressed a few other topics, mentioning that all official SEC business is frozen as long as the US federal government remains shut down. Although individual employees are free to publicly advocate for future rules changes, the Commission won’t be preparing these innovation exemptions for the foreseeable future.

Still, if Atkins can enact innovation exemptions for crypto, it would represent a huge change. The Trump administration has been pursuing a laissez-faire regulatory attitude with the industry, but this would revolutionize things.

However, the SEC will need to craft the language of these measures carefully. “Crime is legal now” is a damaging ethos to the crypto community, and Atkins is proposing explicit permission to break the rules.

Without crucial guardrails, these radical measures may further destabilize capital markets.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

How to avoid AI? This is the big dilemma for pension funds and sovereign funds

The AI wave is breaking through institutional investors' diversification defenses. From stocks and private equity to bonds and infrastructure, AI risk has fully penetrated—Goldman Sachs estimates that companies related to AI account for 40% of the S&P 500's market value, and AI bond issuances make up nearly half of the investment-grade market. Pension funds and sovereign wealth funds are being forced to redefine "risk," struggling to survive between missing out on gains and excessive concentration.

华尔街见闻2026/09/21 01:16

Highlights of the U.S. Stock Market This Week: Intensive Speeches from Federal Reserve Officials, Middle East Situation and China-U.S. Summit Influence the Market

This week, U.S. stock market investors will focus on the trajectory of interest rates, tensions in the Middle East, the U.S.-China summit and technology-related topics, as well as calls to slow down the development of artificial intelligence (AI), while weighing whether major stock indexes can reach new historical highs.

智通财经2026/09/21 00:31