SEC to Introduce Crypto Innovation Exemptions in January

Highlights:

• SEC Chair Paul Atkins said crypto innovation exemption rules could start in January.
• The rules will help DeFi firms launch products faster and face fewer delays.
• SEC also plans to support crypto companies going public, helping firms like Kraken.

The U.S. Securities and Exchange Commission (SEC) Chair, Paul Atkins, said that innovation exemption rules for crypto firms could be announced as early as January. These rules are meant to help crypto companies launch products faster, especially in decentralized finance. Atkins said that some current securities laws slow down innovation in the crypto market.

SEC Plans January Rollout of Innovation Exemption to Help Crypto Firms

In a CNBC interview, Atkins said the SEC could finalize the exemption rules in the next month or so. He explained that this plan is part of the SEC’s effort to support the crypto sector, after past administrations had stricter rules. The innovation exemption rules will give temporary help to crypto firms until Congress passes the crypto market structure bill. This bill will create a clear legal framework for crypto regulation. The SEC is also helping lawmakers with the technical details to make sure the bill matches industry needs.

SEC Chair Paul S. Atkins said in an interview with CNBC that the Commission expects to issue an “innovation exemption” for the crypto industry in about a month. Atkins also stated that the SEC plans to introduce new policies next year to improve the market environment for IPOs.…

— Wu Blockchain (@WuBlockchain) December 2, 2025

Paul Atkins first talked about the innovation exemption rules in September. At that time, he expected them to be ready by the end of 2025. However, the U.S. government shutdown from October through November caused delays. During that period, the SEC could not move forward with its plans.

🚨 JUST IN: U.S. SEC CHAIR PAUL ATKINS SAYS THE AGENCY WILL BEGIN FORMAL RULEMAKING FOR AN “INNOVATION EXEMPTION” BY LATE 2025 OR EARLY 2026, AIMED AT BOOSTING DIGITAL ASSET AND TECH DEVELOPMENT IN THE U.S. HE ADDED THAT DESPITE SHUTDOWN DELAYS, THE PLAN REMAINS A TOP SEC… pic.twitter.com/CpvXW8EQVj

— Coinwaft (@coinwaft) October 8, 2025

The exemption is designed to reduce delays caused by current rules, which can slow down product launches. Firms in the decentralized finance (DeFi) space, where fast action is very important, will benefit the most from these new policies. Next year, SEC policies will also focus on supporting growth in initial public offerings (IPOs). Atkins said the commission wants to make it easier for crypto companies to go public. This could create opportunities for firms such as Kraken, Grayscale, and BitGo.

IPO Plans Could Support Crypto Firms

Paul Atkins will join Nasdaq CEO Adena Friedman for a discussion about revitalizing IPOs. He also mentioned that he may give a major speech at the New York Stock Exchange, likely focusing on crypto rules and creating a more supportive regulatory framework. These steps show the SEC’s effort to modernize oversight while keeping the market stable.

By offering temporary exemptions, crypto firms can operate with less legal risk until Congress passes formal legislation. This approach could speed up crypto adoption in regulated environments. It gives firms a clearer path to launch new products and prepare for public listings.

The innovation exemption could especially help products that face delays under current securities laws. Atkins said the exemptions would give projects a short-term legal window while Congress works on permanent legislation. The crypto market structure bill is still being developed. It will create a clear framework for digital assets across the U.S. market.