We explain what this policy softening means for crypto market participants.
The US Securities and Exchange Commission (SEC) is planning to significantly ease the regulation of tokenized securities. According to Bloomberg, the regulator could publish a so-called “innovation exemption” as early as this week, simplifying the trading of tokenized stocks.
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What Will Change for Tokenized Stock Trading?
According to sources familiar with the situation, the SEC may allow the issuance and trading of tokenized shares of public companies without the mandatory consent of the issuers themselves. Such tokens could be created by third parties and traded on decentralized platforms. However, they would not necessarily provide token holders with the full set of rights associated with traditional shares, such as voting rights or dividends.
The regulator plans to establish minimum requirements for such platforms, including investor protection measures. If these requirements are not met, tokens could be removed from circulation.
The initiative is actively supported by SEC Commissioner Hester Peirce, known for her pro-crypto stance. However, according to Bloomberg, some SEC staff members oppose allowing trading in tokens created by independent parties.
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Repeal of the “Gag Rule”
At the same time, the SEC announced the repeal of a 1972 rule that prohibited companies settling enforcement actions from publicly disputing the regulator’s allegations. The agency’s new leadership, including Chairman Paul Atkins, believes the “gag rule” restricted free speech and created the impression that the SEC was trying to protect itself from criticism.
“I am glad we are rescinding this policy,” Paul Atkins stated.
The repeal is particularly important for the crypto industry, where dozens of companies have reached settlements with the SEC in recent years and were forced to remain silent about case details.
What Does This Means for the Crypto Market?
The SEC’s new steps signal a continued liberalization of digital asset regulation under the Trump administration. The regulator has already approved NYSE, Nasdaq, and DTCC initiatives on securities tokenization. Analysts expect the tokenized asset market to grow to several trillion dollars in the coming years.
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