According to @jchervinsky, many of the highest-demand crypto products are or may be derivatives regulated by the CFTC, but most cannot comply with the Commodity Exchange Act because it was not written for DeFi or onchain finance (source: Jake Chervinsky on X, Nov 21, 2025). According to @jchervinsky, harsh penalties under current law lead most crypto derivatives products to geofence the United States (source: Jake Chervinsky on X, Nov 21, 2025). According to @jchervinsky, the CFTC can fix this by adopting new rules that allow DeFi and onchain derivatives to compete in the free market, asserting there is no legitimate policy reason to ban crypto-powered derivatives in the United States (source: Jake Chervinsky on X, Nov 21, 2025). According to @jchervinsky, these products address key CFTC risk concerns with better technology than TradFi, U.S. taxpayers show strong demand for access, and outcomes depend on policy choices by CFTC leadership, with him expressing hope that Mike Selig will take the seat soon (source: Jake Chervinsky on X, Nov 21, 2025).

According to the source, the U.S. SEC plans to formalize an innovation exemption for crypto companies by the end of 2025. Source: social media post dated Oct 7, 2025. No official SEC press release, open meeting notice, or rulemaking docket has been identified in the provided material, so the claim remains unconfirmed. Source: SEC.gov. Traders should monitor the SEC rulemaking page and the Federal Register for any proposal or final rule that would specify eligibility, compliance scope, and effective dates. Source: SEC.gov; FederalRegister.gov. The earliest actionable catalysts would be an SEC open meeting notice or a published proposed rule text, which are standard steps in federal rulemaking before any exemption could take effect. Source: SEC.gov; FederalRegister.gov.

According to the source, a social post claims that an SEC leader said a crypto innovation exemption will arrive this year; however, Paul S. Atkins is a former SEC Commissioner from 2002 to 2008 and not the current Chair, while the current SEC Chair is Gary Gensler. Sources: U.S. SEC Paul S. Atkins biography https://www.sec.gov/about/commissioners/atkins and U.S. SEC Gary Gensler page https://www.sec.gov/about/commissioners/gensler. The post does not provide an accompanying SEC press release, rule proposal, or exemptive order; material policy actions are typically published on SEC.gov via the Newsroom and Rulemaking dockets that traders can monitor. Sources: U.S. SEC Newsroom https://www.sec.gov/news and U.S. SEC Rulemaking https://www.sec.gov/rules. A related framework previously floated is Commissioner Hester M. Peirce’s Token Safe Harbor, which outlines time-limited relief for token networks to decentralize and offers a template for what an exemption could resemble if pursued. Source: U.S. SEC Public Statement by Commissioner Hester M. Peirce, Token Safe Harbor Proposal 2.0, 2021-04-05 https://www.sec.gov/news/public-statement/peirce-statement-token-safe-harbor-proposal-2.0-040521. For trading, wait for an official SEC filing such as a proposed rule, an exemptive order, or a staff no-action letter before recalibrating exposure to altcoins relative to BTC and ETH; these items will appear on SEC.gov if adopted. Sources: U.S. SEC Rulemaking https://www.sec.gov/rules and U.S. SEC Division of Corporation Finance no-action letters https://www.sec.gov/divisions/corpfin/cf-noaction.