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SEC delays SEC’s tokenized securities innovation exemption amid Clarity Act talks

Securitize President Brett Redfearn said the exemption was expected Aug. 14 but was pulled back, and he now expects it in early October depending on the Clarity Act’s Senate path.

Reported · Written up by our desk · Regulation

Securitize President Brett Redfearn said the US Securities and Exchange Commission delayed its planned innovation exemption for tokenized securities because releasing it could complicate efforts to secure votes for the Clarity Act, according to The Block.

Redfearn said the exemption was originally expected on Aug. 14, but was withdrawn as lawmakers worked to line up support for the market structure bill. The SEC separately proposed its Regulation Crypto Assets rule on Aug. 18.

He said he expects the innovation exemption to arrive after the Clarity Act, “probably in early October,” noting it is intended to cover tokenized securities traded through a new venue that would not require a broker-dealer, a registered alternative trading system, or an exchange.

Redfearn also pointed to timing risks tied to the Senate, saying Majority Leader John Thune scheduled a cloture vote for Sept. 15 after the Senate missed a vote before its August recess. He added that the exemption could face a court challenge, depending on the outcome.

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