The US Securities and Exchange Commission (SEC) is considering a new approach that could allow crypto-focused businesses to test on-chain ideas with fewer regulatory barriers.
SEC Chair Paul Atkins shared the idea during a June 9 discussion called “DeFi and the American Spirit”, hosted by the SEC’s crypto task force.
Atkins said he has asked staff to create a system that gives temporary exemptions from certain rules. These would apply only under specific conditions and would allow companies to develop blockchain-based products and services more easily.
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This proposal, which Atkins referred to as an “innovation exemption”, is meant to support faster development of crypto tools while the SEC looks at whether its current rules still make sense. He said it could help turn the US into a leading country for crypto businesses.
Additionally, Atkins wants the SEC to explore whether its current rulebook should be changed to better reflect how blockchain works. He pointed out that many of the current rules were designed for systems that rely on intermediaries, such as brokers, advisers, and exchanges.
However, in the crypto industry, those roles are often handled by software rather than people or companies.
As Atkins explained, the original regulations did not account for tools that run automatically without any central authority. That gap could make it harder for crypto firms to operate under existing laws, even if their projects offer the same financial functions in a new way.
On June 3, the SEC announced plans to clarify rules for the crypto industry through a public comment process, rather than relying on lawsuits. What did Atkins say about it? Read the full story.
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