SEC Delays Innovation Exemption, Tokenization Stocks and DeFi Tokens Take Hit

The U.S. Securities and Exchange Commission (SEC) has delayed the rollout of its innovation exemption, causing a downturn in tokenization-related stocks and DeFi tokens.

Shares of companies like Bullish, Figure Markets (FIGR), Coinbase, and Circle fell sharply, with Uniswap (UNI) posting the biggest drop in the crypto market.

The policy delay is being attributed to strong opposition from the White House and traditional financial firms over concerns about the measure's limited legal basis and potential market disruption.

Despite the setback, experts view the move as a temporary slowdown rather than an abandonment of the framework itself. Owen Lau, executive director at Clear Street, said 'tokenization has hit a speed bump, but its underlying momentum has not been broken.'