SEC Innovation Exemption Delayed Again Amidst Legal Concerns

Tokenization-linked stocks have taken a hit, plummeting as much as 11.2% after reports emerged that the SEC's planned innovation exemption for blockchain-based securities is facing another delay due to legal and market concerns.

The Securities and Exchange Commission was reportedly on the verge of announcing at least part of its plan alongside a separate meeting on Regulation Crypto before canceling the session late Thursday.

White House officials raised concerns that the exemption could complicate congressional negotiations over the Digital Asset Market Clarity Act, while SEC staff examined whether the agency had sufficient legal authority to grant relief covering major changes to securities trading.