US SEC proposes innovation exemption for tokenized securities

The leadership of the U.S. Securities and Exchange Commission (SEC) has released a draft proposal for an "Innovation Exemption" aimed at facilitating the introduction of on-chain securities, The Block reported. The measure would grant regulatory exemptions under specific conditions. Speaking at the ETHDenver conference, U.S. SEC Chairman Paul Atkins and Commissioner Hester Peirce said the exemption would allow for the limited trading of certain tokenized securities on new platforms, serving as a stepping stone for a long-term regulatory framework. The move comes as global demand for tokenized assets has surged over the past year, with traditional financial firms like Nasdaq and the Depository Trust & Clearing Corporation (DTCC), as well as crypto companies such as Kraken and Robinhood, entering the market for tokenized stocks and real-world assets (RWA). The SEC is expected to announce a specific plan for processing approvals of related products in the near future.