SEC Said to Further Delay Rollout of Tokenization ‘Innovation Exemption’ Amid CLARITY Act Talks

The US Securities and Exchange Commission has further delayed releasing its proposed “Innovation Exemption” for tokenized securities, according to a report.

Eleanor Terrett, host of Crypto In America, said on Aug. 13 that details of the SEC measure are not expected to be disclosed for now. The proposal has been framed as a way to exempt trading in tokenized securities and similar products from some existing securities rules.

Terrett said ongoing discussions and coordination among stakeholders over tokenization-related provisions in the CLARITY Act affected the timing. A separate SEC move on the innovation exemption could disrupt consensus around those provisions. As a result, the measure may remain on hold until the direction of the CLARITY Act becomes clearer.

The SEC’s public meeting on “Regulation Crypto Assets,” which covers new rules and exemptions for crypto-related fundraising transactions, is still scheduled for Aug. 14. At that meeting, the agency is set to discuss whether to propose a separate issuance framework for certain crypto-asset investment contracts.