The U.S. SEC, under newly confirmed Chair Paul Atkins, is preparing a “conditional relief framework”—an innovation exemption—for blockchain projects, including DeFi and tokenization. In interviews and during the Crypto Task Force Roundtable, Atkins signaled that the SEC may offer temporary waivers from certain requirements to allow quicker market access while full, fit-for-purpose rules are developed.
Atkins outlined three reform areas: token issuance, asset custody, and crypto trading. He plans to revise registration forms (e.g., S‑1), ease overly stringent custodian rules (replacing SAB 121), and modernize ATS regulations to permit concurrent trading of securities and tokens. The goal: keep DeFi innovators in the U.S., not pushing them to jurisdictions like Germany or Singapore. “We shouldn’t fear the future,” he emphasized.
This marks a clear departure from the Gary Gensler era: the SEC won’t rely solely on enforcement, but will build a coherent regulatory infrastructure with formal rules and exceptions. Removing SAB 121 and other barriers started this under the previous administration—Atkins intends to see it through and restore Safe Harbor-style protections (Rule 195) for new finance entrants.
Why this is vital:
This could be a pivotal turning point—crypto projects could enter markets without fear of enforcement. Clear regulation, conditional exemptions, and a tech-focused approach could replace arbitrary bans. This would help U.S. startups stay local rather than migrate abroad.
The compromise remains to be seen. Atkins pledges to combat fraud and “toxic tokens,” but whether clear boundaries between innovation and risk can be maintained remains an open question. The goal: reward responsible actors, penalize bad ones.
