SEC Mulls “Innovation Exemption” to Boost U.S. Crypto Dominance

The U.S. Securities and Exchange Commission is reportedly considering creating an innovation exemption. To encourage crypto firms to develop and operate under clearer legal guardrails.
The proposed carve-out would let projects experiment with new technologies while reducing the fear of enforcement for activities that don’t clearly violate securities laws. Supporters believe the exemption could help the U.S. retain leadership in the crypto industry by giving startups room to innovate domestically. Rather than forcing them to relocate abroad. Critics warn that the exemption must be tightly defined to prevent regulatory loopholes that could invite fraud or abuse in the name of “innovation.”
If implemented, these rules may accelerate investment and adoption in areas like decentralized finance, tokenization, and smart contracts—all under a more predictable regulatory structure.
Clever Robot News Desk 25th September 2025



