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SEC Under Atkins Pivots to Crypto Innovation With Planned ‘Innovation Exemption’

Progress toward the proposed exemption continues under limited operations during the government shutdown.

Overview

  • At DC Fintech Week, Paul Atkins said digital assets and tokenization are now the Commission’s top priority and acknowledged the U.S. is “ten years behind.”
  • He directed staff in June to draft an “innovation exemption” intended to fast‑track on‑chain product development and supervised experimentation.
  • Atkins outlined plans for interagency streamlining, including a unified compliance “super app” or joint registration to cut duplicative requirements.
  • The agency has shifted away from a lawsuit‑driven posture and rolled back deterrent internal policies, including Staff Accounting Bulletin 121.
  • Operational constraints from the shutdown have delayed implementation, with the SEC running on minimal staff and timing for rollout still uncertain.