SEC Innovation Exemption Targets 2025 Crypto Growth Surge

* SEC aims for 2025 crypto rule overhaul by year-end. * New carve-out accelerates digital asset product approval. On September 23, 2025, Fox Business reported that Securities and Exchange Commission (SEC) Chair Paul Atkins unveiled plans for an "innovation exemption." This initiative aims to fast-track crypto product approvals and ease the industry's regulatory hurdles, with the SEC expecting to implement the simplified digital asset regulation by the end of the year. The "innovation exemption" will serve as a temporary carve-out, allowing cryptocurrency companies to bypass outdated securities rules for more tailored oversight as the SEC modernizes its framework for the digital asset industry. This exemption streamlines approval processes for new crypto products and grants firms operational flexibility in a rapidly growing sector. According to reports on September 23 from The Block, Cryptopolitan, and Cointelegraph, the exemption is part of a broader SEC effort to update cryptocurrency regulation for the evolving market. This effort follows recent milestones, such as the SEC's approval of Grayscale's multi-asset crypto exchange-traded product (ETP), which holds Bitcoin, Ether, XRP, Solana, and Cardano. In addition, the agency recently introduced "Project Crypto," an initiative to align securities laws with digital asset advancements. Under Atkins' leadership, these actions mark a stark departure from the policies of his predecessor, Gary Gensler. Since taking office in April 2025, Atkins has argued that most cryptocurrencies should not be classified as securities, signaling a more innovation-friendly regulatory philosophy. As a result, he aims to foster U.S. cryptocurrency advancement and position the SEC as a key facilitator in the financial market's digital transformation. According to CoinMarketCap on September 23, at 18:15 UTC, Bitcoin (BTC) was trading at $112,151.65, a 0.46% decrease in the past 24 hours. Meanwhile, Ethereum (ETH) was priced at $4,154.70, down 0.51%. Other major assets also experienced declines, with Solana (SOL) at $216.72 (-1.98%), XRP (XRP) at $2.85 (-0.40%), and Cardano (ADA) at $0.82 (-0.80%).