SEC Explores Regulatory Tweaks to Foster Tokenization Ecosystem

The U.S. Securities and Exchange Commission is weighing an "innovation exemption" to accommodate the rapid growth of tokenized assets, Chairman Paul Atkins announced Thursday. The MOVE comes as Congress advances landmark stablecoin legislation, signaling a potential shift in the regulatory landscape for digital assets.

Atkins' remarks followed House approval of the GENIUS Act, CLARITY Act, and a third crypto-focused bill. SEC staff is now evaluating whether to relax certain trading restrictions and provide targeted relief to support infrastructure development for tokenized securities. "Assets clearly are moving on chain," Atkins stated. "If it can be tokenized, it will be tokenized."

The regulatory reassessment coincides with growing institutional interest in blockchain-based financial instruments. Market observers note the timing suggests coordinated policy movement between legislators and regulators, potentially accelerating mainstream adoption of tokenization technologies.