The SEC plans to launch the "innovation exemption" regulation by the end of 2025,

The chairman of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, stated that the agency still plans to initiate the process of establishing regulations for the "innovation exemption" (innovation exemption) – aimed at supporting companies developing digital assets and new technologies – by the end of 2025 or early 2026, even though the government is in a shutdown, slowing down the progress.

Speaking at the Futures and Derivatives Law Report event organized by Katten Muchin Rosenman LLP in Manhattan, Mr. Atkins acknowledged that the government's shutdown has "limited" the ability to implement new regulations, but still asserted that this is the top priority of the SEC in the final quarter of the year.

He emphasized that "crypto is the number one priority" and the SEC is currently aiming to become a "supporting innovation" agency, encouraging developers and entrepreneurs to build in the U.S. instead of moving abroad.

If initiated, this process will mark a shift from the "enforcement-based management" approach to formal regulation — unlike the previous period, when the SEC primarily relied on informal guidance documents.

Atkins stated that he wants to refine this framework to "welcome innovators who feel they can do something in the U.S. without having to leave."

However, he also acknowledged that the government shutdown is hindering the work of the SEC, as regulatory activities – including those for cryptocurrency – are currently on hold.

Regarding legislation, Mr. Atkins expressed support for Congress's efforts to pass the GENIUS Act on stablecoins – the first cryptocurrency law enacted in the U.S. – while also hoping that additional bills on market structure will be promoted soon.