The U.S. Securities and Exchange Commission (SEC) has submitted disclosure rules for digital assets and hedge funds to the White House, proposing to introduce an "innovation exemption."

According to a Bloomberg report on March 23, the U.S. Securities and Exchange Commission (SEC) has submitted two proposed new rules to the White House Office of Management and Budget (OMB) for review, one concerning digital assets and the other concerning disclosures by hedge funds and private equity firms. The proposals were submitted on March 20 and made public on Monday. SEC Chairman Paul Atkins previewed the digital asset proposal last week, which includes an "innovation exemption" allowing digital asset companies to be exempt from registering as brokers, exchanges, or other regulated entities for a limited time. The other rule involves significant adjustments to Form PF, used by hedge funds and private equity funds to report performance and risk metrics. Atkins had previously postponed the effective date of the new Form PF disclosures developed during Gary Gensler's tenure to October 1, and stated that he would explore ways to reduce the disclosure burden.