SEC Chair Says U.S. May Be 10 Years Behind in Crypto, Seeks Rules to Attract Innovation

  • SEC prioritizes a clear crypto regulatory framework to attract innovation back to the U.S.

  • Chair Paul Atkins announced work on an “innovation exemption” and regulatory coordination at DC Fintech Week.

  • Atkins endorsed regulated “superapps” combining payments and investments as a path to broader adoption.

SEC crypto regulation front-loaded: Paul Atkins says the U.S. is 10 years behind on crypto; SEC aims to build a framework to attract innovation—read more.

Published: 2025-10-16. Updated: 2025-10-16. Author: COINOTAG.

How is the SEC building a crypto regulatory framework?

SEC crypto regulation is being positioned by Chair Paul Atkins as a top priority: he told attendees at DC Fintech Week that the U.S. is “probably 10 years behind” and the agency is focused on designing a framework and targeted exemptions to encourage firms and innovation to return. The SEC intends to use its statutory exemption powers to permit controlled experimentation while preserving investor protections.

What did Paul Atkins say about an “innovation exemption” and regulatory coordination?

Atkins explained the SEC has “pretty broad authority for exemptions” under current statutes and is exploring how targeted exemptions could enable pilot programs and product experimentation without sacrificing oversight. He said regulatory coordination—conceptualized as an “app” that harmonizes rules across agencies—could ease compliance burdens and make the U.S. a more hospitable home for integrated financial services. Atkins also framed the agency as the “securities and innovation commission,” signaling an operational shift toward balancing innovation and protection.

Frequently Asked Questions

Why does the SEC say the U.S. is behind in crypto?

Atkins cited migration of projects and talent overseas and the absence of a coherent U.S. framework as drivers of the lag. He argued that without predictable rules and coordinated oversight, companies seek jurisdictions with clearer paths to deploy new products, reducing domestic innovation and market activity.

How would an “innovation exemption” work in practice?

An innovation exemption would allow limited, supervised trials of new crypto products under defined conditions—such as caps on participant numbers, disclosure requirements, and reporting to the SEC. The aim is to enable testing while collecting data to inform permanent rulemaking and to protect investors during early-stage deployments.

Context and authoritative sources

This report summarizes public remarks by Paul Atkins at DC Fintech Week and references prior SEC statements on coordinated oversight and platform regulation made in September. Sources consulted for factual detail include public SEC statements and conference transcripts (U.S. Securities and Exchange Commission; DC Fintech Week). All external references are presented as plain text per editorial policy.

Key Takeaways

  • Priority shift: The SEC is emphasizing pro-innovation regulation while maintaining investor protections.
  • Innovation exemptions: Targeted exemptions could permit controlled experimentation and data collection.
  • Superapps and coordination: Atkins supports regulated “superapps” and a coordinated regulatory approach to reduce fragmentation and encourage domestic development.

Conclusion

SEC Chair Paul Atkins’ remarks at DC Fintech Week underscore a deliberate effort to close what he called a decade-long gap in U.S. crypto leadership by crafting SEC crypto regulation that balances innovation with investor safeguards. The agency’s focus on exemptions and interagency coordination aims to restore the United States as a competitive home for digital-asset development. Readers should monitor official SEC communications for formal rule proposals and implementation timelines.

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