SEC Unveils Innovation Exemption for Tokenized Stocks

The Securities and Exchange Commission (SEC) has released its long-awaited 'innovation exemption', which it claims will bring US capital markets into a new digital era. The measure, announced by SEC Chair Paul Atkins on Thursday, allows for the on-chain trading of tokenized stocks.

The exemption goes into effect immediately and is open to public comment, with more permanent rulemaking to follow. It's part of the agency's 'Project Crypto' mission to modernize its rules around new technology.

The SEC's move comes just days after the Senate voted against the Clarity Act, which would have comprehensively regulated the digital asset industry at the federal level.