The US SEC Chair Paul Atkins said the long-awaited innovation exemption for tokenization could arrive in the next few weeks. It coincided with the U.S. House Financial Services Committee’s hearing on tokenized securities in capital markets.
US SEC Chair Paul Atkins Tokenization Innovation Exemption Timeline
SEC Chair Paul Atkins reaffirmed that the securities regulator could introduce the landmark tokenization innovation exemption framework in the coming weeks, Eleanor Terrett reported. The regulatory sandbox allows capital markets to bring securities on-chain without being burdened by cumbersome regulatory requirements.
Paul Atkins added that the innovation exemption is in the process of clearance from the Office of Information and Regulatory Affairs (OIRA) within the Office of Management and Budget (OMB). The SEC will also seek public comments before shaping future rules.
Commissioner Hester Peirce recently revealed that SEC staff are working on a “narrow” exemption that would allow limited trading of certain tokenized securities so firms can experiment with blockchain.
As CoinGape reported earlier, the SEC approved Nasdaq tokenized securities trading. Nasdaq anticipates launching the tokenized securities trading pilot in phases in Q3 2026.
TradFi institutions are showing increased interest in tokenization amid a regulatory push. Notably, NYSE has also teamed up with Securitize to develop its tokenized securities platform.
US House Agrees on Tokenization as the Future of Capital Markets
The House Financial Services Committee held a hearing titled “Tokenization and the Future of Securities: Modernizing Our Capital Markets” on Wednesday. Both parties agreed that tokenized securities are imminent, but the regulatory framework governing them does not yet exist.
The hearing highlighted the broader implications of tokenization for market integrity, investor protection, and capital formation. This helps push legislative bills on tokenization, with the SEC and CFTC to study whether more guidance or rules are necessary.
Summer Mersinger, CEO of the Blockchain Association, played a crucial role in the CLARITY Act negotiations and the Blockchain Association’s engagement with both the SEC and CFTC on digital asset classification.
“Tokenization can strengthen U.S. capital markets, expand access to investment, and support more modern financial infrastructure – but we need regulatory clarity that reflects how blockchain-based systems actually work,” said Mersinger.
US Representatives such as Bryan Steil and Warren Davidson noted that tokenization and blockchain technology will ensure US capital markets dominate the Web3 world.
Source: https://coingape.com/us-sec-chair-paul-atkins-confirms-tokenization-innovation-exemption-timeline-amid-house-hearing/
