The US Securities and Exchange Commission (SEC) is developing a conditional "innovation exemption" framework to facilitate blockchain-based financial products, SEC Chairman Paul Atkins revealed on Monday.
At a roundtable discussion on cryptocurrencies titled "DeFi and the American Spirit," Atkins explained that temporary exemptions would allow companies to bypass certain regulations while still protecting investors.
Atkins has instructed his staff to examine both the exemption framework and possible regulatory changes to better accommodate on-chain financial systems.
He said:
"Most current securities rules and regulations are premised upon the regulation of issuers and intermediaries, such as broker-dealers, advisers, exchanges and clearing agencies."