This shift was made thanks to the broader agency overhaul after Gary Gensler’s departure. Meanwhile, Congress is advancing key crypto legislation—the CLARITY Act and GENIUS Act—while debating protections for blockchain developers. In the UK, the Insolvency Service appointed its first crypto intelligence officer to recover hidden digital assets after the recognition of crypto’s role in bankruptcy and crime.
SEC Explores Rule Changes
The US Securities and Exchange Commission (SEC) is exploring a new “innovation exemption” that could pave the way for a much more flexible regulatory environment for on-chain products and services. SEC Chair Paul Atkins, who previously worked as a crypto lobbyist, revealed the initiative during a Monday roundtable that was hosted by the agency’s Crypto Task Force, titled DeFi and the American Spirit.
(Source: SEC)
Atkins said he instructed SEC staff to consider a framework that would offer conditional exemption relief, giving qualifying firms temporary relief from certain regulatory requirements. The aim is to accelerate the development and market entry of blockchain-based technologies while the SEC works on potential amendments to its existing regulations.
Atkins positioned this move as a step toward fulfilling President Donald Trump’s vision of establishing the US as the global hub for cryptocurrency innovation. He explained that the proposed exemptions will be available to developers and firms that are willing to comply with specific conditions, thereby encouraging compliant innovation in the country. Atkins also shared that many of the SEC’s current rules were not designed to address decentralized financial systems powered by self-executing code, which suggests that regulatory updates are necessary to accommodate these novel approaches.
Additionally, Atkins asked staff to assess whether broader amendments to the SEC’s regulatory structure could better support on-chain financial infrastructure. He acknowledged that the foundational assumptions behind most securities regulations do not easily translate to decentralized systems where software may replace traditional actors.
This announcement was made amid a shift in tone at the SEC since former Chair Gary Gensler stepped down in January. Under Gensler’s leadership, the agency was frequently criticized for regulating the crypto industry through enforcement actions rather than through transparent rulemaking. In contrast, the current SEC leadership, including acting Chair Mark Uyeda and Chair Atkins, launched a Crypto Task Force with the stated goal of creating a practical and responsive crypto framework.
Atkins told the Senate Appropriations Subcommittee on Financial Services on June 3 that the SEC intends to use the “notice and comment” process to refine its approach. He also revealed that the Crypto Task Force is expected to release its first report in the coming months.
Blockchain Bills Gain Momentum in Congress
Meanwhile, US lawmakers on the House Financial Services Committee are preparing for a crucial markup hearing on Tuesday to consider the Digital Asset Market Clarity Act of 2025, which is also known as the CLARITY Act. The goal of the bill is to define a regulatory framework for the cryptocurrency market, and it could undergo amendments to include new protections for blockchain developers.
Committee chair French Hill introduced an amendment focused on the treatment of “non-controlling blockchain developers,” and proposed that such individuals or service providers not be classified as money transmitters, thereby exempting them from related registration requirements.
This amendment seems to draw from the Blockchain Regulatory Certainty Act, a separate piece of legislation that was introduced in May by Representative Tom Emmer and a bipartisan group of lawmakers. The proposal to integrate the two bills gained support from several crypto advocacy organizations, including the Blockchain Association, which urged lawmakers to unify the legislative efforts to provide clearer guidance for the crypto industry.
The markup hearing on Tuesday will serve as a platform for committee members to discuss and vote on amendments to the CLARITY Act, and could potentially pave the way for the bill to be sent to the full House for consideration.
Meanwhile, in the Senate, legislators are expected to vote on the GENIUS Act, which seeks to regulate payment stablecoins. Senate Majority Leader John Thune wants to finalize the stablecoin bill within the week.
Coinbase Chief Legal Officer Paul Grewal praised the bipartisan progress on stablecoin regulation and believes in the importance of a market structure bill for long-term industry stability. He thinks that while rules for stablecoins are essential, the broader regulatory clarity offered by the CLARITY Act is equally vital.
Despite this progress, the path forward for the CLARITY Act is still uncertain. Representative Maxine Waters, ranking member of the committee, expressed strong opposition by criticizing the bill for failing to address alleged corruption linked to President Donald Trump’s connections to the crypto industry. Waters hosted a Minority Day hearing on Friday, arguing that the legislation would only serve to legitimize misconduct rather than prevent it.
Nevertheless, there are signs of bipartisan support. Representative Ritchie Torres, a Democrat and co-sponsor of both the CLARITY Act and the Blockchain Regulatory Certainty Act, appears to want to push the legislation forward.
UK Insolvency Service Targets Hidden Crypto
In the UK, the Insolvency Service took a major step toward tackling the rising involvement of cryptocurrency in bankruptcy and criminal cases by appointing its first crypto intelligence specialist. Andrew Small, a former police investigator with experience in economic crime, will now lead efforts to trace and recover digital assets that have gone unaccounted for in insolvency proceedings.
This move comes in response to a staggering 420% increase in crypto-related insolvency cases in the UK over the past five years. The total estimated value of crypto assets in such cases rose from just over £1,400 to more than £523,000.
Small’s role will involve using his expertise to identify and track various types of digital assets, from mainstream cryptocurrencies like Bitcoin and Ethereum to meme coins like Dogecoin and even non-fungible tokens (NFTs). The Insolvency Service is responsible for recovering funds to repay creditors in bankruptcy and liquidation scenarios, and said Small’s appointment will improve outcomes by providing investigators with the technical knowledge that is required to navigate the complex crypto landscape.
Neil Freebury, head of intelligence at the Insolvency Service, believes that Small’s addition to the team will enhance collaboration and help in cases involving crypto ownership. As digital asset ownership becomes more prevalent, Small said that crypto is now “very much a recoverable asset” in insolvency cases.
Andrew Small
A recent study by the Financial Conduct Authority revealed that 12% of UK adults owned crypto in 2024, up from just 4% in 2021. The average value held by these individuals was approximately £1,842.
In parallel with the Insolvency Service’s ramped-up efforts, UK authorities are also tightening regulations on the crypto industry. Starting Jan. 1, 2026, crypto companies will be required to collect and report detailed information on every customer trade and transfer. These requirements include full names, addresses, tax identification numbers, the crypto used, and transaction amounts.
