In an interview with CNBC, Atkins said the SEC already has sufficient authority to advance crypto oversight without waiting for Congress.
- Atkins noted that the SEC is providing “technical assistance” to lawmakers but cannot predict when any bills might advance.
- The upcoming exemption is designed to reduce friction for crypto firms operating within regulated markets.
- He said the SEC’s broader goal is to modernize its framework to make public listings more attractive.
Securities and Exchange Commission Chairman Paul Atkins reportedly said on Tuesday that the agency is preparing to remove regulatory “barnacles” from its rulebook and introduce an “innovation exemption” early next year aimed at supporting crypto firms.
In an interview with CNBC, Atkins said the SEC already has sufficient authority to advance crypto oversight without waiting for Congress. While the agency is offering “technical assistance” to lawmakers on potential legislation, he said the timing of any new bills remains uncertain.
“If you’ve ever had a boat and have barnacles on the hull, you know, it’s time to scrape off those barnacles and make our ship be able to sail quickly through the waters.”
Paul Atkins, Chairman, Securities and Exchange Commission
Atkins emphasized that the planned exemption is intended to create room for responsible development in the digital-asset sector, adding that the U.S. has been overly cautious on crypto innovation compared to its counterparts. The goal, he said, is to build rules that provide clarity and reduce friction for companies trying to operate in regulated markets.
SEC Looks To Streamline Rules for Capital Formation
Atkins said the SEC’s broader priority heading into 2026 is modernizing regulations to improve access to public markets. He argued that the current framework often deters companies, particularly smaller ones, from pursuing listings.
He outlined three areas the SEC intends to address. The first one was updating rules to make them “fit for purpose” for companies seeking capital. The second involves curbing strike suits and litigation that can discourage IPO candidates. Lastly, the agency plans to revisit corporate-governance provisions that allow precatory proposals and certain ESG-driven activism to consume attention without enhancing shareholder value.
Push To ‘Make IPOs Great Again’
According to Atkins, reducing unnecessary procedural hurdles and legal risk is central to reviving the pipeline for initial public offerings. He said the agency wants to encourage companies to treat U.S. capital markets as their primary destination rather than looking abroad or delaying listings indefinitely.
U.S. equities were mixed in midday trade on Tuesday. The SPDR S&P 500 ETF (SPY) was up 0.04%, the SPDR Dow Jones Industrial Average ETF (DIA) gained 0.27%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) moved 0.38% higher. Retail sentiment around QQQ on Stocktwits dipped to ‘neutral’ from ‘bullish’ territory over the past day.
Meanwhile, the cryptocurrency market was also in recovery mode on Tuesday, rising 6.8% in the last 24 hours as Bitcoin (BTC) climbed back above $90,000. BTC’s price rose 6.6%, with retail sentiment on Stocktwits improving to ‘neutral’ from ‘bearish’ territory over the past day.
With crypto markets still volatile, Atkins said regulatory clarity is needed to give firms confidence that innovation will not be penalized. He framed the upcoming exemption as part of that effort, calling it a step toward a more balanced and predictable regime.
Read also: Bitcoin’s Price Steadies At $86,000 After $1B Liquidations – Grayscale Sees New Highs In 2026
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