The Securities and Exchange Commission has delayed a planned regulatory exemption that would have allowed U.S. crypto firms to trade tokenized stocks. SEC staff had prepared a draft of the so-called innovation exemption, which was expected to be released soon. The delay indefinitely postpones a framework meant to bridge traditional and digital asset markets, alongside the stalled Crypto Clarity Act. Commissioner Hester Peirce defended the proposal’s narrow scope, stating it would only facilitate trading of digital representations of existing equity securities.
The Securities and Exchange Commission postponed a plan to grant broad exemptions for crypto firms trading blockchain-based tokenized stocks. Agency staff had prepared a draft of the so-called innovation exemption for imminent release, according to sources. The delay affects companies preparing to launch tokenized asset projects under the anticipated regulatory sandbox.
Blockchain-based tokenized stocks have been anticipated by investors in both crypto and stock markets for months. Tokenization was intended to unite traditional and digital asset industries, alongside the passage of the Crypto Clarity Act. Both initiatives now appear delayed indefinitely while further deliberation occurs.
SEC Chair Paul Atkins had previously indicated the agency would soon debut its proposed exemption. Commissioner Hester Peirce defended the proposal’s narrow focus amid criticism of the delay. She wrote on X that the framework was “limited in scope and would facilitate trading only of digital representations of the same underlying equity security that an investor could purchase in the secondary market today, not synthetics.”
Peirce added that she appreciates public interest in the rule but not the hyperbole surrounding it. The postponement means the regulatory pathway for on-chain equities remains unclear.
