The US Securities and Exchange Commission (SEC) is exploring a new “innovation exemption” to encourage the development of blockchain products and services. The proposal aims to temporarily waive certain regulations, allowing firms to innovate without strict oversight.
According to Paul Atkins, SEC chair, the innovation exemption could help accelerate the growth of onchain technologies in the US. He believes it will fulfill President Trump’s vision of making America a leading hub for cryptocurrency development.
The proposed framework would provide relief from specific regulatory requirements, but only if firms meet certain conditions. This temporary exemption is intended to speed up market entry while the SEC reviews and updates its rules.
Atkins acknowledged that current securities laws may not be well-suited for self-executing software code, which could displace traditional issuers and intermediaries. The SEC’s Crypto Task Force has been working on a new framework, aiming to provide clarity and guidance for crypto firms.
In contrast to the previous administration’s approach under Gary Gensler, who was criticized by the crypto industry for rulemaking through lawsuits, the current leadership is adopting a different strategy. The SEC has dismissed long-running enforcement actions against crypto firms and released guidance on common crypto staking activities.
The agency plans to release its first report from the Crypto Task Force in the coming months, marking a shift towards more notice-and-comment approaches rather than relying on court decisions.
Source: https://cointelegraph.com/news/sec-mulls-crypto-exemption-onchain-innovation