Source: CoinTribune Original Title: SEC to Introduce Crypto Innovation Exemption Starting January 2026 Original Link: https://www.cointribune.com/en/sec-to-introduce-crypto-innovation-exemption-starting-january-2026/

SEC Moves to Encourage Responsible Crypto Innovation

US crypto firms are seeing a clear shift toward a more open regulatory climate under the new administration. SEC Chair Paul Atkins has confirmed that an innovation exemption will begin in January 2026, giving blockchain companies a more workable avenue to introduce specific on-chain products while staying under the agency’s supervision. The plan removes earlier barriers without removing federal oversight, creating a clearer track for firms developing new offerings.

Key Points

• The SEC plans to introduce an innovation exemption for the crypto sector in the coming weeks to support responsible blockchain development.
• SEC Chair Paul Atkins emphasized that the sector has faced years of regulatory pressure, which has pushed innovation overseas rather than fostering it in the United States.
• Market operators have raised concerns that broad use of exemptions could create risks for investors and market stability.

Background

Speaking on CNBC’s Squawk Box on Tuesday, Atkins said the SEC plans to introduce an innovation exemption for the crypto sector in the coming weeks. This initiative began in July 2025 as part of a broader effort to revive blockchain development after several difficult years for the industry. It was designed to encourage responsible experimentation while still maintaining regulatory guardrails.

Atkins had initially aimed to implement the exemption before the end of the year. However, he noted that the prolonged government shutdown across October and November forced the agency to pause work, pushing the timeline back.

“We were impeded a bit by the government shutdown. Obviously, we couldn’t work on things during that time. But we’re on track and we will be able to forge forward with a crypto area and make sure that we are able to embrace this new area of innovation that for too long, the United States basically just pushed back against.” - SEC Chair Paul Atkins

His latest remarks build on comments he made last month, where he pointed out that the sector had gone through at least four years of heavy pressure, which he believes drove innovation overseas rather than allowing it to take root in the United States.

Concerns From Market Operators

Not all market participants are confident about the exemption. Market operators have expressed concern that while they support the concept of exemptive relief in principle, broad application could pose risks to investors and the overall market structure.

They have cautioned that the SEC should be careful about granting exemptions to firms that could bypass long-standing regulatory safeguards. This view shows why some traditional market participants remain cautious, even as many crypto firms view the exemption as a positive development.

Broader Regulatory Context

Atkins also addressed the ongoing crypto bill in Congress, explaining that the SEC is working with lawmakers and providing technical input so the legislation stays aligned with existing federal rules and fits within the wider legal framework.

The SEC chair outlined the agency’s plans for next year, including policies aimed at supporting the IPO market. Atkins noted that the commission is updating parts of its rule book to reflect current market conditions and highlighted that improving the appeal of IPOs is a key priority.

He further noted that the agency is reviewing the current litigation environment to remove obstacles that have delayed companies from pursuing initial public offerings. The SEC will also review corporate governance practices and other procedural hurdles that have unnecessarily slowed companies from going public. These reviews are part of a broader effort to streamline the rules and make capital markets more efficient and supportive of growth.