Weekly Crypto Regs Roundup: SEC Mulls Innovation Exemption, Lummis Backs Bitcoin Tax Break
The crypto regulation atmosphere for digital property within the U.S. is evolving quickly, with policymakers balancing technological improvement and investor safety forward of the 2026 election cycle.
This week’s developments mark a serious shift towards mainstreaming crypto inside conventional finance—from Washington’s proposed “innovation exemption” for blockchain startups to North Dakota’s state-backed stablecoin and Senator Cynthia Lummis’s renewed push for tax reform on on a regular basis Bitcoin use.
SEC Eyes “Innovation Exemption” to Keep Builders Onshore
U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins confirmed that the agency is finalizing an “innovation exemption” framework meant to assist crypto corporations experimenting with blockchain functions contained in the United States.
The measure, anticipated by the tip of 2025, would provide a regulated sandbox for blockchain startups, permitting them to check merchandise below restricted oversight slightly than relocating to friendlier jurisdictions.
“Atkins stated this stays a prime precedence regardless of the federal government shutdown,” CoinDesk reported. “We need innovators to really feel welcome right here in order that they don’t flee to overseas jurisdictions,” he added.
If adopted, the exemption may present a transparent pathway for blockchain corporations to innovate inside the U.S. with out going through fast enforcement dangers—a long-standing concern for the crypto trade. Analysts view the transfer as a strategic response to worldwide competitors, as jurisdictions such because the EU, UAE, and Singapore have already carried out complete digital asset frameworks.
North Dakota Launches the “Roughrider Coin”—A State-Backed Stablecoin
In a transfer that might redefine state-level participation in digital finance, North Dakota has introduced plans to launch the “Roughrider Coin” in 2026 by means of the Bank of North Dakota, the nation’s solely state-owned financial institution. Developed in partnership with fintech agency Fiserv, the stablecoin will probably be absolutely backed by U.S. {dollars} and primarily used for interbank transactions, equivalent to mortgage settlements and development advances.
North Dakota’s initiative follows Wyoming’s Frontier Stable Token, launched earlier this yr, positioning the 2 states on the forefront of integrating blockchain into public monetary infrastructure. By leveraging distributed ledger expertise, the Roughrider Coin seeks to make monetary transactions between native banks sooner, safer, and fewer reliant on conventional fee rails.
Industry observers say the venture may function a blueprint for different U.S. states exploring tokenized cash methods, particularly as Washington debates the way forward for central financial institution digital currencies (CBDCs).
Senator Lummis and Jack Dorsey Unite on Bitcoin Tax Reform
Meanwhile, Senator Cynthia Lummis (R-WY) is advancing legislation impressed by Jack Dorsey, the founding father of Block and a vocal Bitcoin advocate, to exempt small Bitcoin transactions from capital positive factors tax. The proposed “de minimis” exemption would exclude purchases below $300—as much as $5,000 yearly per taxpayer—from IRS reporting necessities.
Working on it. If that is of curiosity to you, please inform your Senators/House member! https://t.co/HXagXRsK1Q
— Cynthia Lummis
(@CynthiaMLummis) October 9, 2025
The measure would make Bitcoin extra sensible for day-to-day funds, eradicating one of many largest obstacles to crypto’s mainstream adoption. “Working on it,” Lummis confirmed on X, stating her ongoing collaboration with Dorsey.
The initiative revives her earlier Digital Asset Tax Fairness Act, which stalled earlier this yr, and aligns with broader Republican efforts to scale back regulatory friction for digital property.
Crypto Becomes a Voter Issue Ahead of 2026
A new poll from McLaughlin & Associates and The Digital Chamber reveals that 64% of voters now think about a candidate’s stance on crypto “essential” in shaping their vote. The outcomes point out a rising bipartisan curiosity in digital property, with most traders favoring Republicans to steer crypto coverage reform.
Three-quarters of respondents stated they assist the Trump administration’s rollback of Biden-era enforcement actions on digital property, reflecting a shift in public sentiment towards lighter regulation and innovation-led coverage.
As crypto regulation deepens, digital property are evolving from area of interest monetary instruments to a defining political subject. With federal companies, state governments, and lawmakers now aligned on increasing blockchain’s position within the financial system, 2025 might mark the yr the U.S. started closing the hole between regulation and innovation.
The put up Weekly Crypto Regs Roundup: SEC Mulls Innovation Exemption, Lummis Backs Bitcoin Tax Break appeared first on Cryptonews.
