SEC Plans Innovation Exemption for Digital Assets by 2026
The U.S. Securities and Exchange Commission (SEC) plans to introduce an "innovation exemption" for companies involved in digital assets by late 2025 or early 2026, as per Chair Paul Atkins. This move aims to encourage innovation and prevent pushing developments abroad. The ongoing government shutdown is affecting the SEC's rulemaking efforts, particularly regarding cryptocurrencies.
- The SEC seeks to transition from regulation-by-enforcement to formal rulemaking in the crypto sector.
- Atkins emphasized the importance of welcoming innovators to operate within the U.S.
Market Structure Bill
Congress is working on cryptocurrency laws, notably the GENIUS Act focused on stablecoins. However, opinions vary on the likelihood of a market structure bill passing before 2025 ends.
- Industry figures have mixed views on the bill's progress, with predictions ranging from a 51% chance of passing to skepticism about its realization.
Stablecoins
The GENIUS Act has led to proposed rules for stablecoins by the Treasury Department. This development could spur increased use and integration of stablecoins in financial systems.
- Visa's integration of USDC exemplifies growing stablecoin adoption.
- Stablecoins are expected to gain traction as collateral in fund transfers and other financial contracts.