The Securities and Exchange Commission (SEC) has deferred its planned “innovation exemption,” designed to streamline regulatory processes for tokenized securities trading, citing concerns from the White House and Wall Street regarding legal challenges and market implications.
Key Facts:
– The innovation exemption was intended to reduce red tape for companies issuing and trading blockchain-based securities.
– It would have been incorporated into the SEC’s proposed “Reg Crypto” rulemaking, focusing on projects seeking to raise capital through tokens.
Uncertainties:
– There are fears about potential legal hurdles that could arise from broader crypto legislation discussions currently underway in Congress.
Written by Steven Cook
Regulation Desk
