Key Notes
- The President Trump administration is fulfilling its crypto mandate with the new SEC proposed ‘Innovation Exemption’ rollout.
- The launch of this crypto regulatory initiative is expected by January 2026.
- Paul Atkins blamed the US government shutdown for the delay so far.
The US Securities and Exchange Commission (SEC) Chair, Paul Atkins, has revealed that the innovation exemption rule is on the roadmap for crypto firms in 2026. He specifically mentioned that this exemption would come into effect by January, reflecting the agency’s effort towards strengthening the crypto ecosystem within the United States.
US Government Shutdown Impedes Innovation Exemption Launch
As part of the crypto regulation teaser, Paul Atkin clarified that the initial rollout plan of the innovation exemption rule was impeded by the US government shutdown, which started on Oct. 1.
This new shift is about to mark a major upgrade for issuers within the crypto sector as they will be equipped to launch tokens and products faster than before, without full SEC registration.
Noteworthy, this is the first time that the digital asset industry will be experiencing such leniency. Ash Crypto on X described the move as the biggest US regulatory greenlight since Bitcoin BTC $91 675 24h volatility: 7.9% Market cap: $1.83 T Vol. 24h: $79.64 B ETF approvals back in 2024.
🚨BREAKING: SEC Chair Paul Atkins confirms Crypto “Innovation Exemption” is launching in January 2026.
Projects can now launch tokens and products FAST without full SEC registration for the first time ever.
This is the biggest U.S. regulatory green light since Bitcoin ETF… pic.twitter.com/yGe430XLMz
— Ash Crypto (@AshCrypto) December 2, 2025
Atkins’ announcement is a sharp contrast from what was obtainable during Gary Gensler’s tenure as the leader of the securities agency. Under Gensler, there was an anti-crypto sentiment that truncated the efforts of digital asset service providers.
The harsh regulatory environment at the time also spread to the TradFi firms that were attempting to integrate crypto via exchange-traded funds. Paul Atkins, under President Donald Trump, is now doing all he can to introduce clearer rules of engagement for Web3 firms
US SEC Invests in Boosting Crypto Industry
Back in July, Atkins introduced “Project Crypto,” a regulatory initiative aimed at modernizing securities law and bringing US financial markets onto blockchain rails. He mentioned that this was a generational opportunity to lead global innovation, adding that, “The future is arriving at full speed, and the world is not waiting.”
One core goal of this initiative is to implement recommendations from President Trump’s Working Group on Digital Asset Markets. Ultimately, the central focus of Project Crypto is to remove legal uncertainty stifling crypto asset innovation.
Recently, the US SEC proposed a token classification , a four-category system for crypto with a “sunset” provision. This will typically end the asset’s security status once decentralization has been proven and code deployed. The outlined categories are digital commodities, digital collectibles, digital tools, and tokenized securities.
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