SEC Strives to Foster Crypto Innovation While Ensuring Investor Safety

The U.S. Securities and Exchange Commission (SEC) has introduced a sweeping regulatory roadmap for the cryptocurrency industry, with Chairman Paul Atkins highlighting a new direction focused on encouraging innovation alongside regulatory oversight. In its Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions, the SEC revealed intentions to draft rules that clarify how crypto assets are governed, including possible exemptions and safe harbors for issuance, custody, and trading Statement on the Spring 2025 Regulatory Agenda - SEC.gov [ 1 ]. The agenda also outlines efforts to ease regulatory burdens and update current regulations, signaling a renewed emphasis on market effectiveness and investor safeguards Statement on the Spring 2025 Regulatory Agenda - SEC.gov [ 1 ].

Atkins has made it a priority to establish an "innovation exemption," which would let crypto businesses introduce products with fewer regulatory obstacles, targeting completion of this rule by the end of 2025 SEC's Atkins Says Agency Pushing Toward 2025 Rules Allowing … [ 2 ]. This move is part of "Project Crypto," a comprehensive plan to update securities regulations for digital assets. The exemption would offer conditional relief from outdated requirements, allowing companies to operate as the SEC crafts more suitable rules. Focus areas include tokenized securities, decentralized finance (DeFi) systems, and "super-apps" that combine both traditional and crypto services under a unified license.

This new SEC strategy represents a break from the enforcement-centric approach of previous leadership. Atkins stated that the agency has dismissed several crypto-related enforcement actions started under former Chair Gary Gensler, describing them as "burdensome" and not aligned with current goals SEC’s Paul Atkins says crypto companies no longer have … [ 3 ]. The SEC is now prioritizing proactive rulemaking, including joint initiatives with the Commodity Futures Trading Commission (CFTC) to coordinate oversight of digital asset markets. A roundtable planned for late September 2025 will focus on aligning regulatory frameworks and avoiding overlapping requirements.

Atkins also pointed out the importance of updating disclosure rules for public companies and making it easier to raise capital, such as by reducing the frequency of quarterly reporting. He believes the existing system, which dates back to the post-1970 era, is outdated and discourages new companies from going public SEC’s Paul Atkins says crypto companies no longer have … [ 3 ]. The SEC’s Spring agenda addresses this, proposing changes to disclosure obligations and simplifying access to private capital, including the possibility of retail investors participating in crypto investment funds Statement on the Spring 2025 Regulatory Agenda - SEC.gov [ 1 ].

The agency’s reforms also cover market infrastructure. The SEC is re-evaluating the Consolidated Audit Trail (CAT) system in response to industry worries about data protection and expenses Statement on the Spring 2025 Regulatory Agenda - SEC.gov [ 1 ]. Furthermore, it has approved broad listing standards for exchange-traded products (ETPs) that hold cryptocurrencies, making it easier to introduce new products SEC's Atkins Says Agency Pushing Toward 2025 Rules Allowing … [ 2 ]. These updates are in line with the Trump administration’s efforts to establish the U.S. as a leader in crypto innovation.

As the SEC works with Congress on the Digital Asset Market Clarity Act, Atkins stressed the agency’s capacity to act on its own within its legal boundaries. The proposed law, which would clarify the responsibilities of the SEC and CFTC, is expected to move forward in late October 2025 SEC's Atkins Says Agency Pushing Toward 2025 Rules Allowing … [ 2 ]. Meanwhile, the SEC has released informal guidance on issues such as memecoins and stablecoins while awaiting formal rulemaking SEC's Atkins Says Agency Pushing Toward 2025 Rules Allowing … [ 2 ].

The innovation exemption and related policy changes are designed to resolve long-standing concerns about unclear regulations in the industry. By creating a more predictable environment for product development, the SEC hopes to encourage innovation within the U.S. and prevent talent from moving to countries with more favorable crypto regulations. Nonetheless, some critics have voiced worries about possible conflicts of interest, especially regarding the Trump family’s participation in crypto projects such as

. The SEC has not directly addressed these criticisms but has reaffirmed its dedication to enforcing the law where necessary Statement on the Spring 2025 Regulatory Agenda - SEC.gov [ 1 ].