- The SEC is finalizing a new “innovation exemption” for trading tokenized securities onchain.
- The move builds on recent SEC guidance to classify digital assets and clarify its jurisdiction.
- The proposed regulatory interpretation is currently pending review by the White House.
Securities and Exchange Commission Chair Paul Atkins announced at an Economic Club of Washington event that the agency is close to releasing a special exemption for blockchain-based securities trading. This “innovation exemption” aims to create a compliant, limited pathway for market participants to operate while the SEC develops permanent rules.
Atkins said the framework would provide “a cabined framework to begin facilitating the trading of tokenized securities onchain in a compliant fashion.” The exemption follows months of internal discussion and a July 2025 statement where the agency first considered targeted relief for tokenization.
Consequently, this step builds upon recent SEC efforts to clarify digital asset regulation. The agency issued interpretive guidance on March 17, outlining a token taxonomy to distinguish its jurisdiction over securities from other categories like digital commodities.
Atkins described the new classification system as “long overdue.” Meanwhile, the SEC sent the proposed interpretation to the White House for review on March 24. Government records showed the proposal remained “pending review” as of Wednesday.
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