SEC Considers Innovation Exemption to Boost Tokenization After Stablecoin Bill

The US Securities and Exchange Commission (SEC), led by Chair Paul Atkins, is considering introducing an innovation exemption within its regulatory framework to promote tokenization and new trading methods in the digital asset space. This move follows the US House of Representatives passing the GENIUS Act, a landmark stablecoin bill aimed at establishing clear regulatory rules requiring stablecoin issuers to hold dollar-for-dollar reserves in short-term government debt or similar products, which is now awaiting President Donald Trump's approval. Atkins, known for his pro-crypto stance, praised the legislation as a historic step toward making the US a global crypto capital and emphasized the inevitability of asset tokenization, stating, "If it can be tokenized, it will be tokenized." The SEC plans to move away from the enforcement-heavy approach of previous leadership, focusing instead on clear rules to foster innovation and market certainty. While supporters highlight the potential for quicker, cheaper payments and the growth of the stablecoin market to trillions by 2030, some Democrats express concerns that the bill lacks sufficient consumer protections. Overall, the SEC and regulatory developments signal a significant shift toward embracing and structuring the evolving digital asset ecosystem in the US.