A long-awaited innovation exemption for tokenization could arrive in the next few weeks, SEC Chairman Paul Atkins said. This coincided with a US House of Representatives Financial Services Committee hearing on tokenized securities in capital markets.
Coding Innovation Exemption Timeline, Paul Atkins, Chairman of the US Securities and Exchange Commission
SEC Chairman Paul Atkins reiterated that the securities regulator could introduce a landmark tokenization innovation exemption framework in the coming weeks. Eleanor Terret reported. A regulatory sandbox allows capital markets to bring securities onto the chain without being burdened by onerous regulatory requirements.
Paul Atkins added that the innovation exemption is in the process of receiving approval from the Office of Information and Regulatory Affairs (OIRA) within the Office of Management and Budget (OMB). The SEC will also seek public comment before drafting future rules.
Commissioner Hester Peirce recently revealed that SEC staff is working on a “narrow” exemption that would allow limited trading of certain tokenized securities so companies can experiment with blockchain.
As CoinGape previously reported, The Securities and Exchange Commission (SEC) has approved the trading of token securities on the Nasdaq exchange. Nasdaq expects to launch the tokenized securities trading pilot program in phases in the third quarter of 2026.
TradFi institutions are showing increasing interest in the token amid a regulatory crackdown. It is worth noting that the NYSE also cooperated with Securitize to develop its own securities platform.
US House of Representatives approves tokenization as the future of capital markets
The House Financial Services Committee held a hearing titled “Tokenization and the Future of Securities: Modernizing Our Capital Markets” on Wednesday. Both parties agreed that tokenized securities are imminent, but the regulatory framework governing them does not yet exist.
The hearing highlighted Wider implications of coding For the sake of market safety, investor protection and capital formation. This is helping advance token-related legislative bills, as the SEC and CFTC consider whether more guidance or rules are needed.
Summer Mersinger, CEO of the Blockchain Association, played a critical role in the CLARITY Act negotiations and the Blockchain Association’s engagement with both… SEC and CFTC regarding digital asset classification.
“Tokenization can strengthen US capital markets, expand access to investment, and support a more modern financial infrastructure — but we need regulatory clarity that reflects how blockchain-based systems actually work,” Mersinger said.
US representatives such as Brian Steele and Warren Davidson have pointed out that tokenization and blockchain technology will ensure the dominance of US capital markets in the Web3 world.
Tokenizing securities opens up investment opportunities previously available only to the wealthy, but the Biden administration has spent years blocking progress.
I am pleased to see the SEC moving in the right direction under new leadership. pic.twitter.com/zwprII2AcR
– Rep. Warren Davidson (@Rep_Davidson) March 25, 2026
