The SEC Chairman announced the launch of an "Innovation Exemption" before the end of the year, which will significantly accelerate the approval of digital asset products.

At a crucial moment when the cryptocurrency market is ushering in a new round of regulatory clarity, SEC Chairman Paul Atkins delivered an important speech on September 23, announcing that the commission is actively developing an "innovation waiver" mechanism aimed at significantly simplifying the approval process for digital asset products by the end of the year. This initiative is seen by the market as a significant shift in the attitude of U.S. regulators towards crypto innovation, and it is expected to inject new vitality into the industry's development.

####"Innovative Exemption": A New Approach to Digital Asset Regulation

During an exclusive interview with Fox Business News anchor Maria Bartiromo, Atkins clearly stated: "We are seeking an innovation exemption— and are trying to achieve this goal by the end of the year." This brief but significant statement immediately drew widespread attention from the market.

The "Innovation Exemption" essentially acts as a regulatory sandbox mechanism, allowing Crypto Assets companies to temporarily be exempt from strict traditional securities rules under specific conditions. This means that businesses can launch innovative products and services in a relatively relaxed regulatory environment while the SEC formulates specialized regulations.

"This is a significant shift in the mindset of American regulatory bodies," said cryptocurrency legal expert Michael Chen. "Atkins seems to understand that directly applying rules designed for traditional securities markets a century ago to digital asset innovation is not always appropriate. This flexibility will help the U.S. maintain its competitiveness in the global crypto innovation race."

####From Multi-Asset ETP to Broader Innovations

Atkins' remarks came against the backdrop of the recent approval by the United States of the first multi-asset Crypto Assets exchange-traded product (ETP). The product was officially launched last Friday, providing investors with a diversified Crypto Assets portfolio that includes Bitcoin ($112,287), Ethereum ($4,183), Ripple ($2.83), Solana ($215.06), and Cardano ($0.8126).

Grayscale's crypto fund was launched according to the universal listing standards recently announced by the SEC, which significantly shortens the approval time for ETFs under Rule 6c-11. Atkins emphasized that these new listing standards are "another example of how we move forward" and added, "This is not a temporary measure. We are working to provide the market with a stable platform so that they can launch new products."

"The approval of multi-asset ETPs may just be the beginning," fintech analyst Sarah Wong pointed out. "Once the innovation exemption mechanism is implemented, we may see more types of Crypto Assets products being approved, including yield-generating products, synthetic assets, and even investment tools related to DeFi agreements."

####The Atkins Era: A Fundamental Shift in Regulatory Thinking

Since taking office as SEC Chairman in April this year, Gensler has shown a completely different regulatory philosophy from his predecessor, Gary Gensler. He has been an active advocate for digital assets and innovation in the financial industry, committed to establishing a regulatory framework that protects investors without stifling innovation.

On July 31, Atkins announced the launch of "Project Crypto" — a significant initiative aimed at modernizing the rules and regulations related to crypto assets, with the goal of helping "bring U.S. financial markets on-chain." This initiative is seen as the first systematic attempt by U.S. regulators to create a dedicated regulatory framework for digital assets.

"Atkins' encryption plan represents a paradigm shift in American regulatory thinking," explained blockchain policy advisor Robert Chen. "Rather than trying to force new technologies into old frameworks, he chose a more forward-looking approach: rethinking regulation itself to adapt to the pace of technological innovation."

####"Very few tokens are securities": A break with the Gensler era

Atkins's differences with his predecessor on regulatory concepts became more apparent in August this year. At a blockchain seminar held in Jackson Hole, Wyoming, he stated that "few tokens are securities," although "it depends on what the packaging is and how it is sold."

This position stands in stark contrast to Gensler's view, who has consistently argued that, based on the SEC's application of the Howey Test, most digital assets should be regarded as securities. During Gensler's tenure, the SEC adopted an aggressive enforcement strategy against the crypto industry, filing lawsuits against several major exchanges.

"Atkins' statement marks a fundamental shift in the SEC's stance on Crypto Assets," said crypto legal expert Jennifer Liu. "This is not just a change in tone, but a reassessment of the nature of digital assets. This shift could have far-reaching implications for the regulatory environment across the entire industry."

####Market Response and Industry Expectations

Atkins' speech immediately triggered a positive reaction in the market. The prices of major crypto assets rose after the announcement, and investors are optimistic that the regulatory environment in the United States may become more friendly.

"The proposal of an innovative exemption mechanism has long been a desire of the encryption industry," said crypto assets market analyst David Lee. "If implemented properly, it can provide businesses with a safe space to test and launch innovative products while still maintaining fundamental protections for investors. This is an ideal way to balance innovation and regulation."

Industry leaders have also welcomed this development. Executives from several crypto companies have stated that the innovation exemption mechanism will significantly reduce compliance costs and legal uncertainties, allowing them to invest more resources into product development and improving user experience.

"This could be a turning point for the United States to re-establish its position as a global center for crypto innovation," said an executive from a major crypto exchange. "In recent years, due to regulatory uncertainty, much innovation has shifted to more favorable jurisdictions like Singapore, Dubai, and Europe. Atkins' approach may reverse this trend."

####Future Outlook: Key Milestones Before Year-End

As we approach the last quarter of 2025, the market will closely watch how the SEC implements the "innovation exemption" mechanism. The timeline mentioned by Atkins of "by the end of the year" provides a clear expectation for the industry, but specific details are still pending.

Key questions include: What types of products and services will be eligible for exemption? How long will the exemption period last? What conditions must businesses meet to participate? The answers to these questions will determine the actual impact of the innovation exemption mechanism.

"The timeline is ambitious, but not impossible to achieve," commented regulatory expert Alex Thompson. "The SEC has already demonstrated greater efficiency in the approval of crypto ETFs, and innovative exemptions may adopt a similar streamlined process. The key lies in finding a balance between protecting investors and promoting innovation."

####Conclusion: A New Chapter in US Crypto Regulation

The "innovation exemption" mechanism proposed by Atkins represents a potential turning point for cryptocurrency regulation in the United States. If successfully implemented, it could create a clearer and more supportive regulatory environment for the digital asset industry while maintaining the necessary protections for investors.

This development also reflects a broader trend: global regulatory bodies are gradually shifting from initial skepticism and strict limitations to a more balanced and adaptive regulatory approach. In this process, the United States seems to be repositioning itself from a jurisdiction with strict regulations to a potential center for innovation.

For encryption companies and investors, the next few months will be a crucial period for observation and preparation. As more details are published, the market will be better able to assess the actual impact and potential opportunities of the "innovation exemption" mechanism.