Regulatory Authority and Congressional Action
SEC Chair Paul Atkins has stated that the Securities and Exchange Commission possesses sufficient authority to drive digital asset regulation forward without waiting for Congressional legislation, signaling his expectations for the cryptocurrency sector in 2026.
Speaking to CNBC on Tuesday, the SEC chair said the agency is providing technical assistance as Congress considers legislation for digital asset regulation, likely referring to the market structure bill advancing through the U.S. Senate. Atkins noted the agency continues to make progress on rules focused on helping the crypto sector despite operations being impacted by the longest government shutdown in U.S. history.
Innovation Exemption and Independent Rulemaking
The SEC chair confirmed plans to release an innovation exemption within approximately one month. Atkins stated the agency has enough authority to drive forward, expressing confidence in the regulatory framework that the commission can implement independently of legislative action.
The innovation exemption Atkins referenced would likely provide regulatory relief for certain crypto projects, potentially allowing them to operate under modified compliance requirements. This approach reflects the SEC's shift toward fostering innovation while maintaining investor protection standards in the rapidly evolving digital asset sector.
Leadership and Enforcement Approach
Atkins rang the opening bell at the NYSE on Tuesday, outlining his plans for the agency on the cusp of America's 250th anniversary. The Senate confirmed him to chair the SEC in April following his nomination by President Donald Trump.
His leadership has reduced enforcement actions against crypto companies, including issuing no-action letters for decentralized physical infrastructure networks. These actions align with policy directives from the White House under Trump, who has issued several executive orders touching on crypto and blockchain technology.
Digital Asset Market Structure Bill
Lawmakers on the Senate Agriculture Committee and Senate Banking Committee are advancing a digital asset market structure bill that will outline regulatory authority of agencies, including the SEC and Commodity Futures Trading Commission, over cryptocurrencies. Senate Banking Chair Tim Scott said the committee planned to have the bill ready for markup in December.
The market structure bill would establish clearer jurisdictional boundaries between regulatory agencies and provide comprehensive frameworks for digital asset oversight. Atkins emphasized the SEC can continue advancing regulation through rulemaking authority while Congress deliberates on broader legislative solutions.