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Tokenization stocks fall as SEC innovation exemption is delayed again

Bullish slid 9% and Securitize fell more than 5% after the SEC signaled it will push back the exemption that would ease trading in tokenized securities.

Reported · Written up by our desk · Market Structure

Tokenization-related stocks fell in early trading after expectations that the SEC would advance an “innovation exemption” for tokenized securities trading were delayed again, according to CoinDesk. Firms had been looking to the exemption to make it easier to offer trading in tokenized securities, but concerns about the proposal’s legal footing and possible market impact have kept the plan from moving forward.

Bullish, the crypto exchange that owns CoinDesk and is acquiring transfer agent Equiniti as it builds infrastructure for issuing and servicing tokenized securities, dropped 9% in the early session after reversing gains tied to its second-quarter earnings report. Securitize, BlackRock’s tokenization partner and the issuer of its BUIDL fund, fell more than 5% and extended a Thursday 27% drop following earnings.

CoinDesk also reported that the SEC is expected to further delay the exemption, which was previously held up by concerns coming from both the White House and Wall Street. Other crypto names tied to tokenization activity also declined, including Coinbase down 3% and Circle down 4.2%.

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