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A new era has begun, leaving behind the strict regulations of the previous SEC leadership under Gary Gensler and the Biden administration. The focus has shifted from viewing cryptocurrency as a potential systemic threat to fostering innovation with well-defined and adaptable rules. Paul Atkins, who took the helm of the SEC in April 2025, is eager to make progress. His “innovation exemption” proposal embodies this change, aiming to ease regulatory burdens, provide clarity, and give the U.S. crypto industry room to grow.
En bref
- Paul Atkins is developing an “innovation exemption” to expedite the launch of crypto products with less stringent oversight.
- The introduction of the first U.S. multi-crypto ETP, which includes Bitcoin and Solana, signals a change in regulatory approach.
- The SEC and CFTC are collaborating to create consistent regulations for digital assets.
Paul Atkins Inherits Gensler’s Policies: A Shift at the SEC
Gary Gensler’s SEC maintained that most crypto tokens should be classified as financial securities, hindering innovation. Paul Atkins disagrees with this interpretation of the Howey Test. In his view, only a small number of tokens qualify as securities, contingent on their structure and distribution methods.
This change in perspective marks a significant turning point for the U.S. cryptocurrency sector.
Atkins launched “Project Crypto” in July to realize this vision. Its aim is to modernize regulations developed in the 1930s to reflect the current realities of digital assets. This strategy aims to modernize market regulations and cultivate an environment conducive to tokenized products.
He stated the following in an interview on Fox Business:
We anticipate implementing an innovation exemption before the year concludes. There’s a lot of activity, and I’m extremely excited about providing this industry with a solid foundation in the United States, allowing the nation to lead through innovation, as the President requested.
A recent approval of the first American multi-crypto ETP, providing simultaneous investment in Bitcoin, Ethereum, XRP, Solana, and Cardano, exemplifies this philosophy. Atkins aims to leverage the “innovation exemption” to build on this momentum, offering crypto companies a testing environment with reduced regulatory constraints. This measure would function as a release valve, providing the flexibility required to experiment with new products without immediately facing legal hurdles.
Under Atkins’ leadership, the SEC is facilitating progress rather than hindering it. The climate for both investors and businesses is changing dramatically.
Collaboration for Crypto Regulation: SEC and CFTC Joining Forces
Another key initiative for Atkins involves ending the SEC and CFTC’s competition. For many years, the two agencies have contested jurisdiction over digital assets. This has resulted in legal uncertainties, product delays, and crypto startups preferring to establish themselves overseas.
Atkins seeks to end these conflicts. He emphasized:
We need to provide clarity to the market. American investors and the U.S. economy will benefit from the collaboration of the two agencies working together, and I look forward to continuing down this road.
This harmonization accompanies a broader evolution. The recently passed GENIUS Act legally recognizes stablecoins in American law for the first time. The upcoming milestone is the Congressional vote on market structure reform, expected in the fall of 2025.
This step should create a solid legal foundation for existing initiatives.
Key Milestones in the New Direction
- April 2025: Paul Atkins becomes the SEC Chairman.
- July 2025: Project Crypto is initiated to adapt regulations to digital assets.
- September 2025: The first American multi-crypto ETP receives approval.
- Fall 2025: A vote is anticipated on market structure reform.
- The GENIUS Act is adopted, providing the first legal recognition of stablecoins.
Finally, Atkins aims to democratize access to private markets. His proposal suggests that ordinary savers be able to diversify their portfolios with investments previously limited to wealthy individuals and institutional funds through 401(k)s. He believes that crypto regulation should promote financial mobility, not impede it.
Adopting cryptocurrency requires some traditional players to embrace a new framework. However, the atmosphere has shifted; even among Democrats, who have historically been hesitant, joining the American crypto revolution is now more widely accepted.
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.