Headline: SEC says “regulation crypto” is one step from publication; innovation exemption also coming, Chair Atkins tells crypto audience
The Securities and Exchange Commission is nearing publication of a long-anticipated “regulation crypto” that would clarify how the agency applies securities law to crypto fundraising and related activity, SEC Chair Paul Atkins said Monday in Nashville.
Speaking at an event hosted by Vanderbilt University and the Blockchain Association, Atkins said the proposed rule is currently with the White House Office of Information and Regulatory Affairs (OIRA)—meaning it’s one administrative step away from being released. The rulemaking will focus on the Securities Act of 1933 and specifically address fundraising and startup exemptions, he said.
Atkins also told CoinDesk after his Q&A that the agency plans to roll out an “innovation exemption” soon. He described the exemption as designed to let startups experiment without being unfairly disadvantaged by incumbents: “We want people really to experiment within [that] framework,” he said, and invited public feedback once it’s published: “We'd love to have reactions and everything else... It's not a rule as such but obviously we need to know how it's functioning and if people have problems with it or not.”
On the political front, Atkins repeatedly stressed that the SEC’s rulemaking is moving forward regardless of Congress’s actions, though he encouraged the crypto community to stay politically engaged. He acknowledged potential hurdles—“they can throw tacks on the road in front of our tires but they're not going to really slow us down”—but warned that an unfriendly Congress could inject uncertainty into the sector. Pointing to recent electoral outcomes, he urged attendees to make sure “your friends are in Congress,” noting that supportive representatives have delivered benefits for the industry.
What to watch next
- Publication of the proposed “regulation crypto” after OIRA clearance.
- Details of the rule’s treatment of fundraising and startup exemptions under the Securities Act of 1933.
- Release of the innovation exemption and the public comment or implementation period that follows.
Implications
If finalized, this package could provide clearer guidance on which crypto activities the SEC views as securities-related fundraising, and create a regulatory space intended to let startups test new products without tilting rules toward established firms. For market participants, the incoming guidance and exemption will be key to compliance strategies and capital-raising plans.
Atkins’ comments suggest the agency is moving proactively to set crypto policy through rulemaking while inviting industry feedback—an approach that could reshape the regulatory landscape for projects, exchanges and investors once the proposals are published.
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