Peirce Discusses SEC's Innovation Exemption for Tokenized Securities

SEC Commissioner Hester Peirce spoke at SIFMA's Digital Assets Conference on September 23, 2026. She discussed the Innovation Exemption, a time- and size-limited measure aimed at facilitating tokenized securities trading on crypto networks through automated market makers.

Pierce described the exemption as two exemptions contained in one order. The Innovation Exemption is intended to provide relief from certain Exchange Act requirements for qualifying blockchain-based trading venues handling National Market System stocks.

The exemption provides temporary and conditional relief, allowing permissioned automated market makers and liquidity pools. Both forms of relief are scheduled to expire five years after the order's publication.