SEC Unveils Innovation Exemption for Crypto Firms, Launching Sandbox-Style Testing

Crypto businesses are set to experience a significant shift with the SEC’s announcement of an innovation exemption framework. This new regulation, slated for implementation in January 2026, will provide conditional relief from securities rules for certain crypto and tokenization projects. The framework aims to foster rapid development and market entry for innovative crypto companies by allowing them to test their models under supervision instead of full broker-dealer registration.