“`html
What happened?
The SEC is considering an “innovation exemption” to support the growing tokenization ecosystem, as mentioned by Chairman Paul Atkins. This comes as the US House passes a significant stablecoin bill, aiming to reshape the digital asset landscape. The SEC plans to ease regulatory barriers and encourage new trading models that will support the infrastructure for tokenized securities.
Who does this affect?
This affects both traditional finance firms and blockchain-native companies seeking to tokenize real-world assets. It impacts issuers of dollar-backed stablecoins who must hold reserves in safe assets under state or federal regulation. Additionally, it affects brokers, as the SEC plans to roll back rules that allowed them to act as digital asset custodians.
Why does this matter?
This shift by the SEC could have a major impact on the market by potentially increasing the pace of tokenization across different sectors. Tokenized real-world assets already surged by more than 260% this year, reaching a market value of $23 billion. The innovation exemption could facilitate further growth and efficiency in capital markets by allowing tokenization efforts to scale more effectively.
“`