Is the SEC really getting friendlier towards crypto all of a sudden? Or is this simply a really brilliant exercise of raw power that, if unchecked, would have disastrous effects globally? The proposed “innovation exemption” is as problematic as it is alluring. Want to help US-based onchain product development go faster? Who could argue with that? Paul Atkins imagines that America could be the crypto capital – a shining city on a hill of innovation. To me, there’s a darker side—a possibility of financial colonialism disguised as revolutionary change.

US Innovation At Whose Expense?

Regardless of the purity of the SEC’s intentions, unintended consequences are a hell of a beast. Or, that US-based companies have a regulatory free pass—for now. At the same time, the developing crypto sectors in countries such as Ghana have an unclear future. We're already playing catch-up. Our regulatory frameworks are still developing. Could this exemption lead to an unlevel playing field for US firms? Worst of all, it would dampen innovation and entrepreneurship across Africa and the broader developing world.

To me, it feels like the early days of the internet. Recall how US tech firms bulldozed everyone under in markets abroad, setting the world domination playbook to their advantage. Are we not just setting the stage for a re-run, only now with blockchain technology?

We're not talking about widgets here. As we’ve written before, crypto holds the promise of a paradigm shift in how finance works today. Plus, it’s all about access, inclusion and empowerment—and that’s a big deal for people most cut off from the traditional financial system. If the US uses its regulatory muscle to secure an outsize role in the global crypto market, so what? Are we really spurring innovation in the process, or just creating a different form of economic colonialism?

Innovation Or Financial Colonialism?

Here’s where the “Trojan Horse” analogy becomes real. As relief, the SEC’s exemption appears to be rather benign, but it risks increasing preexisting power imbalances. Now imagine that future where US-based crypto giants flourish under the SEC’s wing. In doing so, they’ll have the unique opportunity to set the global rules of the game. Other countries, especially in Africa, will be forced to use standards that are entirely US-based. This would force them to give up control over their own digital economies.

This isn't just about market share. It's about sovereignty. It’s about something infinitely more profound—the right of peoples and nations to chart their own economic destinies. Are we headed in the direction of a future where the US leads the way in crypto innovation? Will this pave the way for a new kind of financial colonialism?

The SEC's move away from enforcement-based regulation under Gary Gensler is welcome. Retreating from those long-running enforcement actions sends the opposite message. The new guidance on staking is positive. These actions need to be considered in the larger frame of global equity.

A Level Playing Field For All?

What's the alternative? What we do need is a more equitable and sustainable approach toward global crypto innovation.

This isn't about hindering US innovation. It’s about making sure the benefits of crypto go as far and wide as possible, not just to a chosen few at the top.

  • International Cooperation: Harmonizing regulatory standards through dialogue, not imposition.
  • Technical Assistance: Supporting developing countries in building their own crypto ecosystems.
  • Open-Source Solutions: Championing decentralized, accessible technologies that aren't controlled by any single entity.

My final advice to my African policymakers counterparts and crypto entrepreneurs is to be on the lookout. Engage with the SEC. Make your voices heard. Demand a seat at the table. The future of our digital economies depends on it and our children’s future will too. Prevent the SEC’s “innovation exemption” from being used as a vehicle for financial colonialism. Let’s get to work on creating a crypto future that’s global and inclusive for all of us.

I urge African policymakers and crypto entrepreneurs to be vigilant. Engage with the SEC. Make your voices heard. Demand a seat at the table. The future of our digital economies depends on it. Don't let the SEC's "innovation exemption" become a tool for financial colonialism. It's time to build a truly global and inclusive crypto future, together.