U.S. crypto policy, SEC Chair Paul Atkins has announced plans to explore a new “innovation exemption” for blockchain-based projects. During a recent roundtable on decentralized finance, he revealed instructions to staff to draft a conditional exemption framework that could let developers and firms test on‑chain products under certain safeguards. The goal is simple: make it easier to get new crypto tools to market faster while still protecting investors.
Atkins emphasized that traditional securities laws weren’t written with decentralized code in mind. Many rules assume there’s a broker‑dealer or centralized intermediary, but self‑executing smart contracts don’t fit neatly into this model. By allowing qualified entities to operate under a tailored exemption, the SEC hopes to bridge the gap until new rulemaking catches up, speeding up innovation in tokenized securities, DeFi platforms, staking, and other emerging on‑chain use cases.
I have directed the staff to consider a conditional exemptive relief framework or “innovation exemption” that would expeditiously allow registrants and non-registrants to bring on-chain products and services to market.
— U.S. Securities and Exchange Commission (@SECGov) June 9, 2025
This shift marks a stark contrast with the enforcement-heavy approach under former Chair Gary Gensler, which leaned on lawsuits and court decisions to regulate the industry. Atkins has been vocal in acknowledging that prior ambiguity hurt innovation, stating that market participants deserve “clear rules of the road”. He believes that a public notice-and-comment procedure could lead to more robust and predictable rules for crypto companies.
While still in the early stages, the innovation exemption concept has drawn interest beyond the SEC. Commissioner Hester Peirce — known as “Crypto Mom” — is also backing efforts to issue conditional relief for tokenized securities. As the Crypto Task Force prepares to release its first report, market participants are watching closely, hopeful that this shift may finally give the U.S. a competitive edge in on‑chain development.
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