SEC Explores Innovation Exemption to Boost Asset Tokenization

The U.S. Securities and Exchange Commission is actively considering regulatory adjustments to foster asset tokenization, including a potential innovation exemption. SEC Chair Gary Gensler emphasized the inevitability of blockchain-based asset representation, stating, "If it can be tokenized, it will be tokenized." This push comes as major financial institutions explore tokenizing traditional equities and private assets.

The regulatory development follows Congress's passage of the GENIUS Act, a landmark stablecoin bill hailed as positioning America for crypto leadership. Gensler framed the legislation as enabling market growth while maintaining rigorous safeguards. Industry proponents highlight the bill's potential to streamline payments and legitimize the $265 billion digital asset sector.