SEC Chair Atkins says tokenization innovation exemption is weeks away, now clearing OMB review

SEC Chair Paul Atkins has confirmed that the U.S. Securities and Exchange Commission’s long‑trailed “innovation exemption” for tokenization has cleared review at the Office of Management and Budget (OMB) and is now only weeks away from release, according to reporting shared by Fox Business journalist Eleanor Terrett. The exemption is part of the SEC’s broader Project Crypto initiative and is designed as a targeted carve‑out to allow limited, regulated experimentation with tokenized securities and other blockchain-based products under modified disclosure and compliance requirements, rather than the full registration regime normally applicable to securities offerings. Atkins has repeatedly said he wants this framework to give both traditional financial institutions and crypto-native firms room to “experiment” with tokenization while keeping activity within the U.S. regulatory perimeter. Under the emerging framework, the innovation exemption is expected to support on‑chain trading of tokenized securities, including tokenized versions of publicly listed stocks, with features such as 24/7 trading, fractional ownership and near‑instant settlement, while maintaining core investor-protection principles. The exemption is framed as principles‑based and time‑limited, offering a regulatory “runway” for new tokenized products and business models, and sits alongside a parallel SEC effort to formalize a token taxonomy, clarify when an investment contract ends under Howey, and distinguish between digital commodities, collectibles, tools, payment stablecoins, and digital securities. The OMB clearance signals the proposal has passed a key interagency review step, making its publication and formal public comment process imminent – a significant milestone for U.S. policy on tokenization and the integration of blockchain infrastructure with traditional capital markets.

✨ AI-generated background, compiled from web sources — not editorial content.

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