The U.S. Securities and Exchange Commission is developing an innovation exemption to allow limited trading of tokenized securities on a trial basis. The measure aims to test blockchain uses while longer-term rules are prepared.
SEC Chairman Paul Atkins described the policy in March as an innovation exemption that would be limited in time and scope. He said the goal is to develop a durable regulatory framework for the technology.
Commissioner Hester Peirce noted that the agency can use its existing exemptive authority rather than pursue formal rulemaking. She said the commission routinely applies such powers.
Former SEC officials said the exemption would carry more weight than staff statements but less permanence than a full rule. They added that reversing established market activity could prove difficult for any future administration.
Atkins has called for Congress to provide statutory backing, noting that current securities laws date to the 1930s.
