SEC to Finalize Crypto Innovation Exemption by 2026, Chair Atkins Announces

The U.S. Securities and Exchange Commission (SEC) is advancing plans to establish a formal "innovation exemption" for digital asset companies, with Chairman Paul Atkins targeting end of 2025 or Q1 2026 for implementation. Despite current government shutdown constraints, Atkins emphasized this remains the agency's top priority to transform the SEC into a pro-innovation regulator and prevent crypto industry migration overseas. During the Katten Muchin Rosenman LLP legal event in Manhattan, Atkins acknowledged four years of regulatory repression had driven innovation abroad but confirmed crypto is now "job one" for the commission. The formal rulemaking would move beyond previous enforcement-based regulation toward clear guidelines. The announcement coincides with legislative progress on the GENIUS Act for stablecoin regulation, though experts remain divided on passage prospects for broader market structure legislation. Industry leaders project stablecoin integration will accelerate following Treasury Department rulemaking, with Visa's USDC integration cited as early adoption example.