The US securities regulator is working on an “innovation exemption” to stoke the creation of more onchain products and services, according to Securities and Exchange Commission chair Paul Atkins.
Atkins, a former crypto lobbyist, said during a Monday crypto roundtable led by the SEC’s crypto task force titled DeFi and the American Spirit that he has directed staff to consider a conditional exemption relief framework.
Exemptions could speed up innovation
These temporary exemptions would relieve firms from specific regulatory requirements to foster innovation in emerging tech sectors, provided they meet certain conditions.
Atkins said it would speed up the process of bringing onchain products and services to market while the SEC staff considers amendments to the Commission’s rules and regulations.
“An innovation exemption could help fulfill President Trump’s vision to make America the crypto capital of the planet by encouraging developers, entrepreneurs, and other firms that are willing to comply with certain conditions to innovate with onchain technologies in the United States,” he said.
At the same time, Atkins said he has asked staff to consider whether amendments to the commission’s rules and regulations would provide needed accommodation for issuers and intermediaries who seek to administer onchain financial systems.
“Most current securities rules and regulations are premised upon the regulation of issuers and intermediaries, such as broker-dealers, advisers, exchanges and clearing agencies,” he said.
“The drafters of these rules and regulations likely did not contemplate that self-executing software code might displace such issuers and intermediaries.”
Crypto framework is still a work in progress
The agency’s Crypto Task Force was launched on Jan. 21 by acting SEC chair Mark Uyeda, who was tasked with establishing a workable crypto framework for the agency.
Atkins revealed in June 3 remarks to the Senate Appropriations Subcommittee on Financial Services that the SEC will hone its crypto policies with “notice and comment” and move away from shaping its rules through the courts.
He previously appeared before lawmakers on May 20 and said the Crypto Task Force would release its first report in the next few months.
New approach at SEC
During Monday’s crypto roundtable, Atkins also bashed the previous administration under former SEC Chair Gary Gensler and its approach to crypto.
Gensler was heavily criticized by the crypto industry for supposedly creating policy through lawsuits and legal settlements rather than rulemaking.
Related: SEC charges Unicoin crypto platform over alleged $100 million fraud
Since Gensler resigned on Jan. 20, the SEC has adopted a different approach to crypto, dismissing long-running enforcement actions against crypto firms.
SEC staff have also released guidance around the most common crypto staking activities, saying they do not violate securities laws, as well as information about how federal securities laws could apply to crypto.
Magazine: SEC’s U-turn on crypto leaves key questions unanswered
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