Paul Atkins Pushes Innovation Exemption to Aid Blockchain Growth in the US

Highlights:

• The SEC may offer exemptions to help crypto firms launch blockchain services faster under clear conditions.
• Paul Atkins says old rules do not match new blockchain systems based on automated code.
• SEC staff confirm that common staking services do not break current securities laws.

The United States Securities and Exchange Commission is considering a new framework to support the launch of blockchain-based services and products. Chair Paul Atkins revealed the agency may allow conditional exemptions that would help developers and blockchain companies operate more freely. These exemptions could apply to both registered and non-registered actors, allowing them to bring services to market more quickly.

Key points from Chairman Paul Atkins’ remarks today at “DeFi and the American Spirit,” SEC’s Crypto Task Force Roundtable on Decentralized Finance – a 🧵

— U.S. Securities and Exchange Commission (@SECGov) June 9, 2025

Speaking at the SEC’s final roundtable under the Crypto Task Force’s Spring Sprint Toward Clarity program, Atkins said the plan is to move fast while maintaining oversight. The approach, he noted, is designed to assist firms that follow specific conditions while they work with onchain systems. He also explained that while the commission and staff work on new rules, temporary allowances can serve as a bridge to help the market move forward.

Atkins stated that these exemptions could support President Trump’s aim to make the United States a leading center for blockchain activity. He said that developers and firms willing to meet set conditions could begin operating sooner under this proposed model. The new approach will focus on open engagement instead of lawsuits or other harsh actions.

Atkins Promotes Innovation Exemption and Rejects Enforcement-Driven Rules

Atkins also expressed concerns about how the agency had handled crypto matters in the past. He pointed to policies under former Chair Gary Gensler, which often relied on legal actions. According to Atkins, the commission must now follow the authority it has from Congress rather than push forward using court cases or threats.

He said that earlier leadership discouraged people from joining the crypto space. They did this by suggesting that users and staking service providers were involved in securities-related actions. However, Atkins said his team is now looking at new ways to work with these actors without using lawsuits as the main tool.

He introduced the idea of an innovation exemption to describe the path forward. This type of exemption, he said, would provide short-term relief from certain restrictions that already exist. In turn, they will allow compliant firms to operate while new rules are being developed. Atkins explained that the exemption will help support innovation while still protecting investors and the public.

He also mentioned that many current rules focus on traditional entities such as exchanges, brokers, and clearing agencies. However, blockchain systems often use automated software instead of these traditional actors. He said that older rules may not match these new methods, and his team will consider changes to better fit the new models.

Crypto Task Force Prepares Guidance and New Exemptions for Blockchain Projects

The SEC’s Crypto Task Force, launched earlier this year, is working on a report that will offer more guidance. Commissioner Hester Peirce is leading the task force, which will share its findings in the coming months.

Atkins said the staff has also released updates about staking. They noted that most common staking activities in the crypto industry do not fall under securities laws. These clarifications could help the public understand how the Commission plans to handle crypto services in the near future. Atkins said that the commission will focus on reviewing its current rules. In addition, the agency wants to make sure that the rules fit with blockchain systems that rely on code rather than people.