SEC launches five-year Innovation Exception for on-chain tokenized US stock trading; CFTC advances crypto regulatory framework as Bitcoin rallies past $81K.
Regulation & Gov ·
The SEC has introduced a five-year "Innovation Exception" program designed to allow qualifying platforms to conduct on-chain trading of tokenized US stocks with relief from certain exchange registration and dealer-registration requirements. The framework permits eligible venues to offer 24/7 trading and faster settlement while maintaining core shareholder rights such as dividends and voting rights for compliant instruments, though synthetic price-tracking products remain excluded. Separately, the CFTC submitted its proposed "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets" for White House review, marking progress toward a formal regulatory structure under the agency's existing authority. The CFTC also issued a no-action position shielding certain software developers from introducing-broker classification under specified conditions.
Both regulatory moves arrived after the failure of the CLARITY Act in Congress. SEC Chair Paul Atkins had previously signaled the agency would continue its crypto agenda independent of legislative passage, and CFTC Chair Michael Seling made similar statements before the vote stalled. The timing coincided with a sharp price movement in Bitcoin, which climbed from $78,000 to above $81,000 on the heels of the CFTC announcement.
The degree to which regulatory certainty versus other market factors drove the price surge remains unclear. Additionally, while the SEC and CFTC actions represent substantive near-term developments, rules promulgated by regulators lack the durability of congressional legislation and remain subject to reversal by future administrations.