US Regulators Emerge from Senate Gridlock with Crypto Rulebook

The US Senate's inability to pass the CLARITY bill has led to regulatory measures from both the SEC and CFTC that set the stage for a rule-based crypto regime.

On Wednesday, the SEC issued an exemption that allows tokenized U.S. stocks to be traded onchain through Automated Market Makers (AMMs), which are pools of assets that price trades using code rather than traditional exchanges.

The exemption has some conditions: shares must be the real thing and carry dividends and voting rights, venues must vet participants before trading, smart contracts must be open and auditable, and live on a public blockchain, and companies can object to their own stock being tokenized.

Initial period of the exemption is for five years. The announcement has seen prices rebound quickly, with UNI up 45.1%, RAY up 26.7%, and AERO up 17.8%.