The US Securities and Exchange Commission (SEC) is preparing to develop formal rules for the crypto industry, including the so-called “innovation exception”. About it writes CoinDesk with reference to statements of the Chairman of the agency Paul Atkins.

He noted that despite the difficulties associated with the government shutdown, the SEC intends to begin rulemaking by the end of 2025 or in the first quarter of 2026.

“Innovation Exception” involves creating limited treatment for companies testing new products on blockchain. This approach would allow projects to develop in the U.S. without the risk of immediate prosecution for violations of regulations that have not yet been adapted to modern technology.

Atkins said the Commission seeks to move away from the practice of regulating through lawsuits that characterized the previous administration to creating clear and predictable rules. He emphasized that the new initiative should create an environment where developers and entrepreneurs can develop crypto projects in the U.S., rather than seeking more favorable jurisdictions abroad.

“I want innovators to feel that they can operate here in the United States rather than fleeing to foreign jurisdictions,” he said.

The SEC chairman acknowledged that the ongoing government shutdown is slowing down the Commission’s work, especially rulemaking. However, he expressed confidence that the agency will be able to finalize regulations within the designated timeframe.

Atkins also noted the significant progress Congress has made in regulating digital assets. In particular, he mentioned the passage of the GENIUS Act, which aims to establish a legal framework for stablecoins. According to him, this document was the first major step towards systemic oversight of the crypto market in the US.

Amid Atkins’ speech, others in the industry showed cautious optimism. Blockchain Association CEO Summer Mersinger estimated the likelihood of the market structure bill passing at 51-52%.

Multicoin Capital partner Greg Xetalis emphasized that further development of the sector will depend on “regulatory plumbing” – putting specific rules into practice.

Xetalis also noted that the integration of stablecoins into the payment solutions of large companies like Visa indicates the joining of cryptocurrencies to the everyday economy. In his opinion, the passage of the GENIUS Act could catalyze a new “Cambrian explosion” of innovation in digital finance.