White House · SEC · Wall Street · CLARITY Act · CoinDesk
U.S. SEC to again delay 'innovation exemption' for tokenization amid Wall Street, White House concerns
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The Securities and Exchange Commission (SEC) is set to further delay its anticipated "innovation exemption" designed to accelerate tokenized securities trading after concerns emerged from both the White House and Wall Street over the proposal's legal footing and potential market impact, according to three industry .
Key facts
- It's potentially a huge market: analysts at global bank Citi projected that tokenized assets could become a $5.5 trillion market by 2030
- In June, the SEC proposed eliminating Rule 611 of Regulation NMS, the so-called Order Protection Rule, a move widely viewed as removing one of the biggest regulatory obstacles to tokenized securities
- In a June 30 letter submitted to the SEC, the trade group said "these types of significant structural changes should be considered and made through an open and transparent process" that allows
- At the time, SEC Commissioner Hester Peirce told CoinDesk that she did not expect the innovation exemption to include these synthetic tokens
Summary
The Securities and Exchange Commission (SEC) has again delayed its planned “innovation exemption” for tokenized securities amid concerns from the White House and Wall Street firms, industry . The White House fears the move could complicate congressional negotiations over the Digital Asset Market Clarity Act, while major financial firms, led by trade group SIFMA, argue that sweeping market-structure changes should go through a formal rulemaking process rather than exemptions. The setback comes as tokenization gains momentum across Wall Street, with exchanges and clearinghouses testing blockchain-based trading and analysts projecting a multitrillion-dollar market for tokenized assets by the end of the decade.