SEC’s Peirce and Atkins outline ‘incremental’ path forward for tokenized securities as agency readies innovation exemption

SEC Commissioner Hester Peirce and Chair Paul Atkins discussed details of a proposed innovation exemption for onchain securities during an event at ETHDenver, framing it as an incremental step to integrate tokenization technology into U.S. capital markets. Atkins plans to unveil a plan soon to fast-track crypto products. The exemption aims to facilitate limited trading of certain tokenized securities on novel platforms while developing a long-term regulatory framework. This development occurs amid growing interest in tokenized equities from firms like Nasdaq and DTCC, and surging trading volumes in related products globally. Peirce emphasized that the exemption, while important for integration, would not fundamentally change the entire financial system overnight, addressing concerns from traditional finance skeptics. Atkins supported allowing market participants to use decentralized applications on public blockchains, but acknowledged many Americans might prefer intermediaries for custody and trading.

(Source：The Block)