US Securities and Exchange Commission Chair Paul Atkins said the agency is nearing an exemption that would let market participants trade tokenized securities onchain within a compliant, limited framework. Speaking at the Economic Club of Washington, Atkins described an “innovation exemption” intended to provide a cabined pathway for firms to begin facilitating onchain trading of tokenized securities while the SEC develops longer-term rules of the road.
The measure would create a structured, time-limited avenue for experimentation and limited activity in blockchain-based securities markets—an area constrained in the US by the lack of clear regulatory frameworks. The innovation exemption has been under internal discussion for months as the SEC seeks ways to accommodate tokenization and new trading methods; Atkins previously noted in July 2025 that the agency was considering targeted relief to support tokenization.
Commissioner Hester Peirce has also said staff continue to develop the exemption to allow controlled experimentation with tokenized securities while the SEC assesses how existing securities laws apply to onchain markets.
Atkins’ comments build on the SEC’s recent push to clarify how digital assets are classified under federal securities laws. On March 17 the agency issued interpretive guidance proposing a token taxonomy that groups digital assets into categories such as digital commodities, collectibles, tools and stablecoins, with tokenized securities remaining within the SEC’s primary jurisdiction. The taxonomy was framed as a bridge ahead of potential market structure legislation and as a step to draw clearer lines between the SEC and the Commodity Futures Trading Commission; Atkins called the taxonomy “long overdue.”
The proposed interpretation was sent to the White House for review on March 24 and, as of the latest government records, remains pending review.