SEC Chairman Paul Atkins said the US Securities and Exchange Commission plans to introduce a new “innovation exemption” by December that would allow crypto firms to launch products faster. The change would let companies deploy services first and move into compliance later. Atkins called it a more stable platform for innovation and said it could make the US market more competitive. The exemption is seen as a major shift in SEC oversight and comes as the regulator adapts to growing pressure over digital assets.
Since President Donald Trump took office, the SEC has dropped several enforcement cases and set up a crypto task force. The agency is also drafting new rules that define how tokens and trading platforms fit under securities law. This move follows broader action from the White House. Patrick Witt, executive director of the White House Council of Advisors on Digital Assets, said at Korea Blockchain Week that a comprehensive crypto market structure bill should be ready by year-end. The bill builds on the bipartisan CLARITY Act, which passed in July, and the GENIUS Act, which introduced stablecoin standards earlier this year. Together, the bills aim to clarify the roles of the SEC and the Commodity Futures Trading Commission in overseeing crypto markets.
One of the most debated policies involves retirement plans. Trump signed an executive order in August that directs regulators to revise rules for employer-sponsored 401(k) accounts. The order would allow retirement portfolios to include alternative assets such as private equity, real estate, commodities, infrastructure, and Bitcoin. House Republicans, including Financial Services Chair French Hill, pressed the SEC to act quickly. They argue that offering Bitcoin in 401(k) accounts could give about 90 million Americans new ways to diversify and reduce reliance on traditional assets. Rep. Warren Davidson added that Bitcoin in retirement accounts could even surpass exchange-traded funds in long-term flows since contributions are allocated automatically.
Supporters highlight Bitcoin’s potential role as a hedge. They point to research from Deutsche Bank suggesting that Bitcoin and gold could both serve as reserve assets by 2030 as volatility falls and institutional demand grows. Institutional adoption has been one of the main drivers of Bitcoin’s recent growth, with major firms adding exposure as a way to manage inflation and global uncertainty. Advocates say that including Bitcoin in 401(k) accounts would accelerate this trend and give workers direct access to digital assets as part of their long-term savings.
Critics warn that the risks remain significant. Analysts argue that high fees, liquidity mismatches, and volatility could expose fiduciaries to lawsuits under the Employee Retirement Income Security Act, or ERISA. Consumer advocates add that most savers lack the tools to evaluate complex digital assets. They say that putting Bitcoin in retirement portfolios could raise investor protection concerns and expose ordinary workers to losses. Some legal experts note that fiduciaries may face new challenges in explaining digital assets to plan participants and defending decisions if markets turn volatile.
The SEC’s innovation exemption and the push for Bitcoin in retirement accounts are part of a broader effort to recast US crypto oversight. For years, the debate has centered on whether regulators should prioritize innovation or protection. Proponents argue that giving crypto firms faster approvals and allowing Bitcoin in retirement accounts will boost investment choice and keep the US competitive with other markets. Critics counter that moving too fast could weaken safeguards and place too much risk on workers and savers.
The Department of Labor and the SEC now face a 180-day deadline to update regulations tied to Trump’s order. These updates could shape how retirement portfolios include alternative assets and how the SEC handles compliance for crypto firms. Industry watchers expect more details from Atkins in the coming months, including how the exemption will apply to startups and established firms. Lawmakers are also waiting to see how the market structure bill will balance SEC and CFTC authority.
The discussion has turned into one of the most coordinated strategies yet for digital assets in the United States. It combines legislative action, executive orders, and regulatory policy shifts into a single framework. Whether Bitcoin becomes a standard option in 401(k) plans or crypto companies secure faster product approvals will depend on how regulators balance investor protection with the need for innovation. The outcome will set the tone for how the US handles digital assets in the years ahead and could influence global policy as other countries watch the American approach.
