SEC Chairman Paul Atkins: Plans to establish an encryption innovation exemption system by the end of 2025

Recently, the chairman of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, elaborated for the first time on the future regulatory direction of the agency in an exclusive interview with Fox Business News.

He stated that the SEC is working closely with the Commodity Futures Trading Commission (CFTC) to advance the formulation of encryption regulations and plans to establish an #innovation exemption system by the end of 2025, aimed at providing a more flexible regulatory environment for cryptocurrency businesses.

Atkins pointed out that the current regulatory uncertainty has constrained innovation. He used financial products such as single stock futures as an example to illustrate that unclear regulatory responsibilities may hinder market development. To this end, the #SEC and CFTC are clearly delineating regulatory responsibilities and are committed to building a stable market structure framework.

At the same time, the upcoming innovative exemption system will allow encryption companies to launch new products under the premise of meeting basic requirements, avoiding the suppression of innovation by early regulatory burdens.

This regulatory approach stands in stark contrast to that of former chairman Gary Gensler. During Gensler's tenure, the majority of cryptocurrencies were viewed as unregistered securities, and a strict enforcement strategy was adopted.

Gensler's cautious approach has led the United States to lag behind Europe in terms of access to encryption services, specifically reflected in numerous challenges regarding staking services, airdrops, purchasing spot ETFs, perpetual futures, and tokenized securities.

The new policy of the current SEC Chairman Gensler is a response to these structural obstacles, marking a shift in the U.S. encryption regulatory orientation from restriction to a balance of regulation and openness.

In addition, Atkins proposed a plan called "Make IPOs Great Again." He revealed that the number of publicly listed companies in the United States has decreased by about 50% over the past 30 years, with excessive regulatory burdens being the main reason. This solution aims to streamline processes and ensure that ordinary investors have access to private equity funds.

In summary, SEC Chairman Gensler has opened a compliant path for market innovation through a "dual-track strategy of innovation exemption + rule modernization" while maintaining the bottom line of investor protection.

This shift in regulatory thinking not only responds to the development demands of the domestic encryption industry in the United States but also demonstrates a strategic intention to participate in the formulation of global digital finance rules, which may promote the establishment of a new regulatory paradigm that balances protection and innovation.