SEC Tokenization Plan Hits Another Unexpected Roadblock

TLDR

• The SEC is preparing to delay its planned innovation exemption for tokenized securities trading.
• White House officials raised concerns that the proposal could interfere with ongoing Digital Asset Market Clarity Act negotiations.
• SEC staff are reviewing whether the agency has enough legal authority and economic analysis to grant the exemption.
• Wall Street group SIFMA has opposed using exemptions to make broad changes to securities market structure.
• The SEC canceled its Friday meeting, where more details about the tokenization framework had been expected.

The U.S. Securities and Exchange Commission is now preparing to delay its innovation exemption for tokenization. The proposal would ease rules for firms seeking to issue and trade tokenized securities on blockchain networks.

The SEC planned to discuss the exemption during a Friday meeting on separate crypto rulemaking. The agency canceled the meeting late Thursday, adding another setback for the plan.

White House Raises Legal and Timing Concerns

The White House has raised concerns that the exemption could complicate negotiations over the Digital Asset Market Clarity Act. One source said officials feared the move could create disputes while Congress works on broader crypto rules.

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