SEC Prepares to Unveil Blockchain-Based Traditional Securities Exemption

The U.S. Securities and Exchange Commission (SEC) is gearing up to unveil two major crypto initiatives amidst the Congressional struggles over the Clarity Act.

The SEC may release details of its long-awaited innovation exemption for tokenized securities as soon as this week, according to people familiar with the matter cited by Bloomberg.

This comes after the Senate postponed consideration of the Clarity Act until September, and regulators could move ahead with parts of the crypto market-structure agenda without waiting for Congress.

The SEC's innovation exemption would make it possible to experiment with blockchain-based versions of traditional securities, and a mechanism has been developed to allow companies to block the issuance of third-party tokenized versions of their shares.