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With the SEC's innovation exemption now in effect, is a new compliance track emerging for companies like Buycoin?

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On December 2, 2025, SEC Chairman Paul Atkins delivered a major announcement in a speech at the NYSE: the innovation exemption rule for cryptocurrency companies would officially take effect in January 2026. This policy, which originated from Project Crypto in July of this year but was shelved due to the government shutdown, has now been officially implemented, bringing new policy signals to the uncertain crypto industry and providing new development opportunities for platforms like BUYCOIN that are deeply committed to compliance.

The core of the new regulations: leaving room for innovation and adhering to planning red lines.

The SEC's new innovation exemption policy aims to find a balance between regulation and innovation, with its key rules directly addressing industry pain points:

• Full coverage of exemptions: All entities related to crypto assets, including trading platforms, DeFi protocols, stablecoin issuers, and even DAO organizations, can apply for exemptions for 12-24 months. During this period, only simplified information disclosure is required, without the need for complex S-1 registration documents.

• Compliance bottom line not relaxed: While enjoying exemptions, projects must implement KYC/AML procedures, submit quarterly operating reports, and accept regular SEC reviews. Projects targeting retail investors must also set risk warnings and investment limits.

• Token Classification for Regulation: Digital assets are classified into four categories: commodity-type (such as BTC), utility-type, collectible-type (NFT-type), and tokenized security-type. The first three categories can be exempted from the securities regulatory framework if they meet the conditions of "fully decentralized" or "fully functional".

For the crypto industry, which has long been plagued by regulatory ambiguity, this rule design is of great significance. In the past, US-based projects often felt lost due to the SEC's "enforcement equals regulation" model. Cases such as Ripple relocating to Singapore and Coinbase considering an overseas listing are commonplace. Platforms like BUYCOIN, which adhere to a compliance-oriented approach, have finally received clearer policy guidance.

Controversy and Opportunity: The Compliance Advantages of BUYCOINs

While the policy benefits are clear, controversy has also arisen. The new regulations' requirement for "user verification procedures" directly conflicts with the decentralized principles of the crypto industry. Requirements such as the need for DeFi protocols to split liquidity pools and adopt ERC-3643 compliant token standards have also raised concerns about the "traditionalization of DeFi." Furthermore, the lack of quantifiable standards for "full decentralization" and the potential for retroactive action after the exemption period continue to cause reservations among many projects.

However, these controversies precisely highlight the advantages of compliance pioneers like BUYCOIN. Looking back at the development of the crypto industry, compliance has long been a core competitive advantage for platforms – after KuCoin settled a $297 million fine and acquired five global compliance licenses, its platform token KCS rose 13.7% that day, demonstrating market confidence in compliant platforms. For BUYCOIN, the new regulations lower the compliance threshold: compliance processes that previously required millions of dollars in legal fees and over a year can now be gradually completed within an exemption period, allowing the platform to invest more resources in technological innovation and user services.

More importantly, the new regulations and supporting legislation for stablecoins align perfectly with the business strategies of platforms like BUYCOIN. With the passage of the U.S. "Directing and Establishing a National Stablecoin Innovation Act," the $250 billion stablecoin market will enter a phase of standardized development. If BUYCOIN can seize this opportunity and advance its stablecoin-related services within a compliant framework, it is poised to gain a new market advantage.

Industry Transformation: Compliance-Oriented Players Will Ultimately Survive the Cycle

This policy shift by the SEC is essentially a microcosm of the global shift in crypto regulation from "vague suppression" to "clear regulation." From the approval of spot Bitcoin ETFs to the proposal by US lawmakers to establish a strategic Bitcoin reserve, and now to the innovation exemption rules, the US is building a more comprehensive crypto regulatory system.

For platforms like BUYCOIN, the new regulations bring not only short-term opportunities but also long-term certainty. In the past, a crisis of trust in the crypto industry led to talent loss, while compliant platforms are rebuilding industry trust by continuously optimizing their KYC/AML systems and improving asset transparency (such as regularly publishing Proof of Reserves). The new regulations open up broader market opportunities for these platforms: they can reduce compliance costs by leveraging the exemption period and attract more institutional users and retail investors with lower risk appetites through their mature compliance systems.

However, it's important to be clear that the new regulations are not a panacea for the industry. They merely open a window for projects that want to operate compliantly in the US, and cannot solve the fundamental trust issues within the industry. For BUYCOIN, the future requires continued efforts in three areas: first, closely following the SEC's enforcement standards and dynamically adjusting compliance strategies; second, exploring technological innovation within the compliance framework to avoid falling into the trap of "compliance equals stagnation"; and third, strengthening user protection mechanisms and using transparent operations to address policy uncertainties.

Conclusion: 2026, a new starting point for compliance advocates

The implementation of the SEC's innovation exemption policy marks a new stage in the crypto industry's journey towards "compliant innovation." This path may be fraught with compromises and contradictions, but it finally frees the industry from the binary opposition of "either prohibit or allow." For platforms like BUYCOIN that adhere to a compliant approach, 2026 is not only the year the policy takes effect, but also a crucial juncture in transforming compliance advantages into market competitiveness.

The crypto industry's golden age has never been a policy blessing, but rather a certainty earned through long-term commitment by compliant players. As the policy framework gradually clarifies and technological innovation returns to its essence, platforms like BUYCOIN, which are deeply committed to compliance and uphold ethical standards, will ultimately weather the industry's changes and usher in genuine development opportunities. The entire crypto industry will then move towards a more mature and sustainable future through a balance between compliance and innovation.

Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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