The U.S. Securities and Exchange Commission (SEC) is moving ahead with regulatory relief for cryptocurrency firms, defying warnings from major stock exchanges about investor protection and market fairness. This policy shift signifies a stark departure from the SEC’s previous, enforcement-focused approach to crypto oversight. Despite delays caused by the recent government shutdown, Chair Paul Atkins confirmed that an innovation exemption will be released within weeks. This framework would allow certain cryptocurrency businesses to launch blockchain products under SEC supervision without needing to meet full securities registration requirements – essentially a regulatory sandbox for digital assets. While this move is expected to benefit crypto firms, it has drawn criticism from stock exchanges, including Nasdaq, Cboe, and CME Group who argue that the exemptions could weaken investor protections and create an unfair advantage in the market.