Catenaa, Monday, February 23, 2026- US Securities and Exchange Commission leaders over the weekend outlined plans for a proposed innovation exemption aimed at allowing limited trading of tokenized securities.
Some officials described this as an incremental step toward integrating blockchain technology into US capital markets.
Speaking at ETHDenver, SEC Chair Paul Atkins and Commissioner Hester Peirce detailed how the exemption could permit certain onchain securities to trade on novel platforms while regulators work toward a longer-term framework.
Atkins said the approach is designed to facilitate limited activity without overhauling the financial system.
The proposal comes as both crypto-native firms and traditional financial institutions test tokenized equities.
Nasdaq and the Depository Trust and Clearing Corporation have explored blockchain-based settlement models, while exchanges such as Kraken and Robinhood have reported strong early activity in tokenized stock offerings.
Peirce emphasized that tokenized securities remain subject to securities laws, signaling that any exemption would operate within existing regulatory boundaries.
She said expectations on both sides of the debate may be overstated, noting the measure would not transform markets overnight.
Atkins said market participants should be able to trade certain tokenized securities through decentralized platforms, including automated market makers, if they choose.
He added that many investors may still prefer intermediaries to handle custody and execution.
The SEC has recently accelerated crypto-related rulemaking, though it has taken a measured stance on onchain securities issuance and trading.
Observers say the innovation exemption could shape how blockchain-based equities compete with traditional brokerages in the coming years.
