In brief:
₿- SEC Chair Paul Atkins says the agency will advance tokenization rules and on-chain fundraising initiatives despite the CLARITY Act failing to advance in the Senate.
₿- The SEC is distinguishing tokenized securities with actual shareholder rights from synthetic offshore products, while its Innovation Exemption creates a controlled framework for tokenized NMS stocks.
The U.S. Securities and Exchange Commission (SEC) will continue developing rules for tokenized securities and on-chain fundraising despite Congress failing to advance the CLARITY Act, SEC Chairman Paul Atkins said.
Speaking to CNBC on September 29, Atkins said the agency is using its existing authority to provide greater regulatory clarity for companies seeking to raise capital on blockchain networks. He pointed to two areas of work: defining how tokenized assets should be classified and creating a controlled environment for companies to issue and trade tokenized securities.
The Senate rejected a procedural motion on H.R. 3633, the CLARITY Act, by a 49–50 vote on September 15, falling short of the 60 votes required to advance the legislation. Atkins subsequently indicated that the SEC would continue working on crypto-related rules even without new congressional legislation.
SEC distinguishes tokenized securities from synthetic products
Atkins described the SEC’s approach as having two main components.
The first involves determining when a blockchain-based asset represents a tokenized security and when it falls into another category of tokenized asset. The SEC and Commodity Futures Trading Commission (CFTC) have already issued a joint interpretive release addressing the regulatory treatment of different tokenized assets.
The second is the SEC’s proposed Innovation Exemption, which Atkins described as a controlled sandbox for issuing tokenized securities. Under the framework, blockchain-based tokens would represent the same underlying rights attached to the traditional security.
That distinction could become increasingly important as tokenized equities expand. Some offshore platforms offer tokens that track the value of U.S. stocks without giving holders shareholder rights. The SEC’s proposed U.S. framework instead focuses on putting the underlying security itself on-chain, including rights such as voting and dividends.
Stablecoins and Tether fall outside SEC remit
Atkins also addressed concerns about stablecoins being used in sanctions evasion and illicit finance, including allegations involving Tether’s USDT and Iran.
He said stablecoin regulation falls primarily under the GENIUS Act rather than the SEC’s jurisdiction. His comments came shortly after a Senate investigation report said that 84% of wallets sanctioned or targeted for seizure over links to Iran had transacted exclusively or almost exclusively in USDT.
Atkins also discussed IPO disclosures, private credit valuations and the broader U.S. public markets. He said 583 companies had gone public during his first 18 months as SEC chairman, raising approximately $208 billion.
The comments underline that the SEC is continuing to shape the U.S. tokenization framework through agency action, even as broader crypto market-structure legislation remains unresolved.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial, investment, or trading advice. Readers should conduct their own research and consult a qualified cryptocurrency advisor before making any investment decisions.
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Rodcas Consulting Group