Citing TechFlow, the U.S. Securities and Exchange Commission (SEC) announced that its innovation exemption policy for crypto companies will take effect on January 1, 2026. The policy, part of the Project Crypto initiative launched in July 2024, allows entities involved in crypto asset development or operations—including exchanges, DeFi protocols, stablecoin issuers, and DAOs—to apply for a 12- to 24-month exemption from full SEC registration. During the exemption period, projects must comply with simplified disclosure requirements and basic regulatory standards, such as KYC/AML procedures and quarterly reporting. The policy also introduces a four-tier classification for digital assets and has sparked debate over its compatibility with decentralized principles, particularly in the DeFi space.
SEC Announces Innovation Exemption Policy for Crypto Firms
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