According to Bloomberg, the US Securities and Exchange Commission (SEC) has delayed plans to introduce an exemption that would allow crypto companies to trade tokenized equities. report On Friday.
SEC halts token stock exemption plan amid growing concerns
The agency reportedly plans to implement its proposed innovation exemption as early as this week, a draft of which has already been completed and reviewed internally. However, this process has been put on hold following recent discussions between SEC staff and industry stakeholders.
At the heart of the delay are growing concerns about the potential rise of third-party tokens, which are synthetic versions of equity issued without the participation of the underlying companies.
SEC Commissioner Hester Pierce previously indicated that the exemption is likely to prioritize issuer-backed tokens and token rights from registered firms rather than permissionless synthetic assets. The approach aims to ensure that tokenized securities have the same rights and obligations as their traditional counterparts.
“Keep in mind: I always expected it to be limited in scope and would only facilitate the trading of digital representations of the same underlying equity security that an investor can purchase in the secondary market today, not synthetics,” Pierce wrote in an Post On Thursday.
The innovation exemption aims to provide regulatory clarity for crypto firms and decentralized finance (DeFi) platforms seeking to issue blockchain-based versions of US equities.
Bloomberg said SEC staff held a number of discussions with exchanges and other stakeholders in recent days to assess these risks. There has also been no indication of any change in the original proposal.
As the token market continues to grow rapidly, the SEC has taken a more structured approach to shaping crypto regulation. Under Chairman Paul Atkins, the agency has focused on providing clear guidance rather than relying primarily on enforcement actions.
Regulators issued a joint staff statement in January on tokenized securities, describing them as traditional financial instruments offered on blockchain networks. The guidance confirmed that federal securities laws fully apply regardless of whether the asset is issued on-chain or off-chain. It also distinguished between issuer-backed tokens and third-party models, with an emphasis on investor protection and protection of shareholder rights.
The delay comes as the real world asset (RWA) sector continues to expand rapidly. The market capitalization of the sector has grown to over $34 billion, with token equity alone exceeding $1 billion.
Meanwhile, institutions continue to extensively explore blockchain-based securities infrastructure, including the Depository Trust and Clearing Corporation (DTCC) and the New York Stock Exchange (NYSE), which are pursuing tokenization initiatives.
