U.S. SEC nears tokenized securities trading exemption

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SEC tokenized securities exemption

Highlights

SEC Chair Paul Atkins announces agency is close to releasing an 'innovation exemption' enabling structured, limited onchain tokenized securities trading.
The exemption, under development since March, aims to let companies experiment with blockchain-based securities while broader regulations are finalized.
On March 17, SEC issued token taxonomy guidance to clarify digital asset categories and submitted further interpretation for White House review, signaling ongoing regulatory evolution.

Exemption plan for onchain markets

As reported by Cointelegraph, SEC Chair Paul Atkins says the agency is nearing release of what he calls an “innovation exemption” for tokenized securities trading. Speaking at the Economic Club of Washington on Tuesday, Atkins says the measure would give market participants a structured and limited framework to facilitate onchain trading in compliance with securities rules.

Atkins says the exemption is designed as an interim step while the Commission works on longer-term regulation. The proposal would create a pathway for companies seeking to support trading in blockchain-based securities, an area that remains constrained in the U.S. because of the lack of a clear regulatory framework.

The idea has been under discussion at the SEC for months. In July 2025, Atkins says the agency is considering targeted relief to support tokenization and new trading methods, and in March, Commissioner Hester Peirce says staff are still developing the exemption to allow limited experimentation while assessing how existing securities laws apply to onchain markets.

Broader crypto classification effort

The comments come as the SEC advances a wider effort to clarify how digital assets are treated under federal securities law. On March 17, the agency issues interpretive guidance setting out a token taxonomy that groups digital assets into categories including digital commodities, collectibles, tools and stablecoins, with tokenized securities remaining under the SEC’s main jurisdiction.

That interpretation is presented as a bridge ahead of possible market structure legislation and as a way to draw clearer boundaries between the SEC and the Commodity Futures Trading Commission. Atkins describes the taxonomy as long overdue and frames it as a step toward clearer digital asset rules.

On March 24, the SEC sends the proposed interpretation to the White House for review. Government records as of Wednesday show the proposal is still pending review, indicating the agency’s broader crypto oversight framework is still taking shape.

Our earlier coverage followed the Digital Asset Market Clarity Act and its uncertain path through the U.S. Senate as lawmakers try to revive momentum through May committee work. We noted that disputes over stablecoin rewards, plus the need to reconcile Senate and House versions under a tight election-year calendar, remain the key hurdles to getting a full Senate vote.

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