The SEC is expected to release an innovation exemption for tokenized stocks this week, allowing firms to test trading on novel venues like AMMs and public blockchains under defined parameters. This move could determine if crypto-native models compete with incumbents for US investors.
In a May 8 speech, SEC Chair Paul Atkins said the agency could consider a limited “innovation pathway” for on-chain trading systems in the near future. Meanwhile, the agency will reserve formal notice-and-comment rulemaking to determine how crypto platforms fit inside the exchange definition. Atkins tied that idea directly to the SEC's handling of electronic […] The post The SEC looks at a 1990s fix for crypto markets to allow true “innovation pathway” appeared first on CryptoSlate.
SEC Chair Paul Atkins announced the agency is nearing release of an 'innovation exemption' that would allow market participants to trade tokenized securities onchain within a compliant framework. Speaking at the Economic Club of Washington, Atkins said the exemption provides a structured pathway for companies to facilitate blockchain-based securities trading while the SEC develops long-term rules. The announcement builds on the SEC's March 2026 token taxonomy guidance that clarified digital asset classification.
Paul Atkins completes one year as SEC chair, marking dramatic shift from Gary Gensler's aggressive crypto enforcement. SEC dropped investigations, approved crypto ETFs, signed CFTC MOU, and issued guidance not treating most cryptos as securities. Democrats, led by Elizabeth Warren, criticize potential conflicts of interest and reduced enforcement actions to a 10-year low.
The agency's chairman, Paul Atkins, sat down with two key commissioners to outline a shift away from enforcement.
Senator Elizabeth Warren said Paul Atkins may have intentionally misled Congress by pushing back over the SEC's dwindling enforcement actions.
SEC chair Paul Atkins is under fire from Senator Elizabeth Warren, who says he “may have been deliberately trying” to mislead Congress about the agency’s enforcement activity.
