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>>Proposed SEC rule changes could offer legal certainty for Bitcoin ventures, according to Chair Atkins.

Proposed SEC rule changes could offer legal certainty for Bitcoin ventures, according to Chair Atkins.

crypthub

1 day ago

SEC Innovation Exemption Overview

The SEC is proposing an "innovation exemption" to provide conditional, time-limited regulatory permission for crypto developers and firms to test products in the U.S. This framework aims to replace ad-hoc enforcement with defined rules and clarity, fostering compliant innovation in the digital asset space. SEC Chair Paul Atkins announced the initiative on October 2025, emphasizing the importance of welcoming innovation while ensuring investor protection.

Framework Details and Timeline

The proposed exemption will operate under a “conditional exemptive relief framework,” enabling controlled testing and market access with specific conditions and reporting obligations. Rulemaking is expected to begin by the end of 2025, paving the way for a more structured and predictable regulatory landscape for the crypto industry. This represents a shift from the current, often unclear, enforcement practices.

Preparing for the Exemption and Industry Impact

Crypto projects should prepare by reviewing token design, strengthening custody arrangements, documenting testing plans, and seeking compliance counsel. The framework should positively impact DeFi protocols by providing compliance pathways, but it’s crucial to understand the exemption is conditional and doesn't guarantee blanket immunity. The initiative signals renewed institutional interest and a move towards clearer crypto policy within the U.S.