SEC plans to unveil an innovation exemption for tokenized securities and advance a tailored offering regime for crypto investment contracts at Friday's open meeting.
Regulation & Gov ·
The SEC is expected to move forward with two crypto-related regulatory measures at a Friday open meeting, according to reporting. One initiative targets a customized framework for certain investment contracts tied to crypto assets, while the other involves an "innovation exemption" potentially enabling 24/7 blockchain-based trading of tokenized stocks. The exemption framework would allow equity issuers to restrict third parties from tokenizing their shares and would establish stricter anti-money-laundering controls, possibly mandating that trading venues operate as domestic entities.
The proposed exemption represents a significant shift in how securities regulators may handle token-based equity instruments. By creating a structured pathway for tokenized share trading, the SEC could enable continuous market access while maintaining guardrails around corporate consent and compliance. The inclusion of anti-money-laundering requirements and potential US entity restrictions signals an intent to integrate blockchain trading infrastructure within existing financial oversight frameworks.
It remains unclear whether both measures will receive formal approval on Friday or if one or both could face delays. The specific scope of the tailored offering regime and the full terms of the innovation exemption have not been detailed, leaving questions about which investment contract types would qualify and how broadly the domestic entity requirement would apply.