SEC Nears Approval of On-Chain Tokenized Securities Trading, Chair Says

The U.S. Securities and Exchange Commission is moving to allow trading in on-chain tokenized securities, or STOs.

Cointelegraph reported on April 22 that SEC Chair Paul Atkins, speaking at an Economic Club event in Washington on April 21, said the agency would soon announce an "innovation exemption." The framework would allow market participants to trade on-chain tokenized securities on a limited basis while the SEC develops a longer-term regulatory regime.

The innovation exemption has been under discussion at the SEC for the past several months. In July 2025, Atkins said the agency was considering tailored relief to support new trading methods such as tokenization. SEC Commissioner Hester Peirce said last month that the agency was continuing to review an innovation exemption that would partially permit trading in tokenized securities.

The SEC views the innovation exemption as a bridge measure before legislation on crypto market structure, known as the CLARITY Act, is enacted. Atkins described the exemption as a late but necessary step toward clearer crypto regulation.

Separately, the SEC submitted a draft interpretation on cryptocurrency classification and oversight to the White House in late March. Cointelegraph said that marked another step in formalizing the SEC's approach to crypto classification and supervision. As of April 22, the draft was still listed as pending White House review.