SEC Wants to Officially Announce the Innovation Exemption by the End of the Year.

Innovation exemption remains uncertain

Securities and Exchange Commission (SEC) Chairman Paul Atkins announced that the agency aims to begin the rule-making process regarding the "innovation exemption" to support its work on digital assets and other innovative technologies by the end of the year.

Government shutdown affects rule-making process

Atkins noted that the current United States government's shutdown makes it difficult to progress in the rule-making process. However, he emphasized that working on this exemption is among his priorities. The initiation of this process is planned by the end of the year or by the first quarter of 2026.

Cryptocurrency regulations in focus

In a speech at the panel, Atkins stated that cryptocurrencies are among the agency's priorities. He explained that the industry has been under pressure for the past four years, resulting in innovations moving abroad. "Cryptocurrency is primarily what we are addressing," he said, expressing a desire to help innovative entrepreneurs continue their work in the United States.

They are waiting for rule-based regulation

The rule-making process for cryptocurrencies will allow for a departure from the oversight-based regulation applied during the previous administration and the current period's official guidance. In a statement to reporters, Atkins expressed hope that the exemption he proposed last month would be clarified soon.

Developments on market structure legislation

Paul Atkins, who participated in the panel, praised Congress's efforts to pass laws related to cryptocurrencies. Additionally, he emphasized the importance of regulations like the GENIUS Act, which focuses on stablecoins. However, he pointed out that the SEC does not have a significant role in this law.

Potential growth in stablecoins

With the implementation of the GENIUS Act, the Department of Treasury has started publishing proposed rules regarding the stablecoin sector. Greg Xethalis predicts that the existing rules will create a "Cambrian explosion" in the industry. Summer Mersinger also highlighted that the use of stablecoins could see an increase in areas such as financial contracts.