⚖️ SEC delays tokenization exemption again amid White House and Wall Street concerns ⚖️
The SEC has reportedly delayed its proposed “innovation exemption” for tokenized securities after concerns from the White House, Wall Street firms, and SEC staff about its legal authority and market impact.
🔑 Key points
🔹 Friday meeting canceled: The SEC canceled its scheduled August 14, 2026, meeting on “Reg Crypto,” where details of the exemption were expected to be discussed.
🔹 Tokenized securities affected: The proposal was intended to ease regulatory requirements for issuing and trading blockchain-based versions of securities.
🔹 White House concerns: Officials reportedly worry the exemption could complicate congressional negotiations over the Digital Asset Market Clarity Act.
🔹 SEC legal questions remain: Agency staff are reviewing whether the exemption would require additional economic analysis and formal regulatory procedures.
🔹 Wall Street opposition: SIFMA argues that major market-structure changes should go through public rulemaking instead of exemptions or no-action relief.
🔹 Best-execution rules are an issue: Traditional broker obligations may become more complicated if tokenized securities trade through decentralized venues or automated market makers.
🔹 Synthetic tokens drew concern: Earlier versions of the proposal reportedly raised questions about tokens representing securities without controlling the underlying assets.
🔹 Digital representations remain possible: Former SEC Commissioner Hester Peirce said a future exemption could support tokens representing the same underlying equity security.
🔎 Why it matters
🔹 Tokenized stocks, bonds, and funds remain under discussion across Wall Street.
🔹 Nasdaq, the New York Stock Exchange, and the Depository Trust & Clearing Corporation are developing or testing blockchain-based market infrastructure.
🔹 The SEC’s decision will affect how tokenized assets interact with existing securities, brokerage, clearing, and execution rules.
🔹 The delay leaves firms waiting for clearer guidance on how blockchain-based securities markets can operate in the United States.
🎯 Bottom line: The SEC has delayed its tokenization exemption again after concerns from the White House, Wall Street, and agency staff. The proposal remains part of the broader debate over whether blockchain-based securities should operate through existing market rules, new regulations, or a temporary exemption.
https://www.coindesk.com/policy/2026/08/13/u-s-sec-to-again-delay-innovation-exemption-for-tokenization-amid-wall-street-white-house-concerns