SEC Chair: Crypto Innovation Exemption Effective January 2026

The US Securities and Exchange Commission (SEC) Chair, Paul Atkins, announced an "innovation exemption" rule for crypto firms, set to be implemented in January 2026. This rule aims to bolster the US crypto ecosystem by allowing projects to launch tokens and products without complete SEC registration.

Delay Due to Government Shutdown

The rollout of the innovation exemption was delayed due to a US government shutdown starting October 1.
This measure is expected to speed up product launches in the crypto sector.

Ash Crypto on X highlighted this as the most significant regulatory development since [Bitcoin ETF approvals](https://holder.io/coins/btc/) in 2024.

Regulatory Changes Under Paul Atkins

Atkins’ approach contrasts with Gary Gensler’s previous anti-crypto stance.
Efforts are underway to establish clearer regulations for Web3 firms under President Donald Trump’s administration.

Project Crypto Initiative

In July, Atkins launched "Project Crypto" to modernize securities law and integrate US financial markets with blockchain technology.
The initiative follows recommendations from President Trump’s Working Group on Digital Asset Markets to eliminate legal uncertainties hindering crypto asset innovation.

The SEC also proposed a token classification framework with categories such as digital commodities, collectibles, tools, and tokenized securities, which could remove security status once decentralization is proven.