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SEC again delays tokenization innovation exemption after White House, Wall St concerns
The SEC canceled its planned Reg Crypto open meeting and had been expected to share partial details of the exemption on Friday.
The U.S. Securities and Exchange Commission has again delayed an “innovation exemption” aimed at easing regulatory hurdles for tokenized securities, according to industry sources cited by CoinDesk.
The delay follows concerns from the White House and major Wall Street firms. The White House is worried the move could complicate ongoing congressional negotiations over the Digital Asset Market Clarity Act, while leading industry players, including the trade group SIFMA, argue that broad market structure changes should proceed through formal rulemaking rather than exemptions.
CoinDesk reports the SEC had been preparing to release at least some portion of the exemption as soon as Friday, and to discuss it alongside its separate “Reg Crypto” rulemaking effort. The SEC planned an open meeting for Friday, but it canceled the meeting late Thursday.
Tokenization is gaining momentum across Wall Street, CoinDesk notes, with exchanges and clearinghouses testing blockchain-based trading, while analysts project a multitrillion-dollar market for tokenized assets by the end of the decade. The sources also say SEC staff have focused on the agency’s legal authority to issue such broad relief and whether required procedural steps and economic analysis have been completed.