In remarks at the SEC Crypto Task Force roundtable on decentralized finance, SEC Chair Paul S. Atkins said the agency should move toward fit-for-purpose regulation for on-chain markets and has directed staff to explore further guidance or rulemaking and a conditional exemptive relief framework, described as an “innovation exemption,” to speed compliant market entry for on-chain products and services. Atkins welcomed recent Division of Corporation Finance staff statements indicating that voluntary participation in proof-of-work or proof-of-stake networks as a miner, validator, or staking-as-a-service provider is not within the scope of the federal securities laws, while noting that staff statements do not have the force of a duly promulgated rule. He also argued for greater flexibility for self-custody of crypto assets and said developers should not be subject to federal securities laws solely for publishing self-custodial wallet or other on-chain software. Related staff work he described includes assessing how registrants can transact with self-executing, operatorless software systems in compliance with applicable law and whether SEC rules should be amended to better accommodate issuers and intermediaries that seek to administer on-chain financial systems.
U.S. Securities & Exchange Commission 2025-06-09
U.S. Securities & Exchange Commission chair directs staff to develop an innovation exemption and explore rulemaking for on-chain finance
SEC Chair Paul S. Atkins, at the SEC Crypto Task Force roundtable, advocated for fit-for-purpose regulation for on-chain markets and directed staff to explore guidance or rulemaking, including an "innovation exemption" for compliant market entry. He supported excluding certain network participants from federal securities laws and called for flexibility in self-custody of crypto assets. Atkins highlighted ongoing assessments of compliance for transactions with self-executing software systems and potential rule amendments for on-chain financial systems.