Critical Date Announcement from the SEC for Cryptocurrency Regulations

Paul Atkins, the Chairman of the U.S. Securities and Exchange Commission (SEC), made significant remarks regarding cryptocurrencies and digital assets. He indicated that a new 'innovation exemption' regulation could come into effect by the end of the year or in the first quarter of 2026, stating that this initiative was created to support the crypto ecosystem.

Speaking at a legal event held in New York, Atkins emphasized that the government shutdown has slowed the regulatory process but affirmed that the SEC considers the cryptocurrency sector a priority. "Crypto is our top priority," said Atkins, noting that the regulations are structured to encourage developers and entrepreneurs to remain in the U.S.

Atkins mentioned that the pressures on the crypto sector over the past four years have pushed innovation abroad and asserted that this period should come to an end. The new exemption is said to aim to put an end to the previous administration's 'regulation by enforcement' approach and create an official regulatory framework for crypto. "We should keep our doors open to innovators, and we don't want them to flee to other countries," he stated.

In his remarks, Atkins also addressed the stablecoin-focused GENIUS Act and noted that Congress has taken an important step in this area. However, there are differing opinions among lawmakers on whether the regulation will be enacted by the end of the year. Blockchain Association CEO Summer Mersinger assessed the likelihood of the law passing before the end of 2025 as "about 51 percent," while Multicoin Capital partner Greg Xethalis highlighted the strong technical aspects of the bill. Chris Perkins from CoinFund stated that he does not expect approval in the short term.

Under the GENIUS Act, the Treasury Department had published the first draft rules related to the stablecoin market this year. Xethalis emphasized that examples like Visa integrating USDC into its payment infrastructure would "accelerate the everyday use of crypto." The SEC's 'innovation exemption' initiative is seen as one of the most concrete steps in the U.S.'s effort to regain a leadership role in regulating crypto.