The US Securities and Exchange Commission (SEC) is considering a new approach that could allow crypto-focused businesses to test on-chain ideas with fewer regulatory barriers.
SEC Chair Paul Atkins shared the idea during a June 9 discussion called “DeFi and the American Spirit”, hosted by the SEC’s crypto task force.
Atkins said he has asked staff to create a system that gives temporary exemptions from certain rules. These would apply only under specific conditions and would allow companies to develop blockchain-based products and services more easily.
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This proposal, which Atkins referred to as an “innovation exemption”, is meant to support faster development of crypto tools while the SEC looks at whether its current rules still make sense. He said it could help turn the US into a leading country for crypto businesses.
Additionally, Atkins wants the SEC to explore whether its current rulebook should be changed to better reflect how blockchain works. He pointed out that many of the current rules were designed for systems that rely on intermediaries, such as brokers, advisers, and exchanges.
However, in the crypto industry, those roles are often handled by software rather than people or companies.
As Atkins explained, the original regulations did not account for tools that run automatically without any central authority. That gap could make it harder for crypto firms to operate under existing laws, even if their projects offer the same financial functions in a new way.
On June 3, the SEC announced plans to clarify rules for the crypto industry through a public comment process, rather than relying on lawsuits. What did Atkins say about it? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
