The US Securities and Exchange Commission (SEC) is aiming to introduce an 'innovation exemption' by the end of the year, according to SEC Chair Paul Atkins. This new regulatory carve-out would allow cryptocurrency companies to launch products with less stringent oversight while the SEC formulates more tailored regulations. During an interview, Atkins noted that this initiative is part of a broader effort to create a stable environment for the introduction of new financial products. He highlighted recent improvements in approval processes, citing the launch of Grayscale's crypto fund. Since taking office in April, Atkins has advocated for the modernizing of securities regulations to accommodate digital assets. His approach contrasts significantly with his predecessor, Gary Gensler, who viewed most digital assets as securities under the Howey test. This proposed innovation exemption reflects a shift towards supporting crypto innovation within the US financial landscape.

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