- The SEC introduced a five-year "Innovation Exemption" that lets qualifying platforms trade tokenized U.S. stocks onchain, provided the digital shares keep the same shareholder rights as the underlying stock, pause trading when the underlying halts, and give issuers an opt-out.
- The CFTC issued a no-action position easing rules for developers of "passive software" that connects users to regulated derivatives, including prediction markets, without broker registration, so long as they do not handle customer funds or direct trades.
- Both agencies moved without Congress after the Senate failed to advance the CLARITY Act on Sept 15, and the CFTC sent "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets" to the White House OIRA for review.
- Robinhood Markets already offers 200 tokenized U.S. stocks internationally, and the SEC pathway positions it to bring that offering into the domestic market.
- Bitcoin rallied on the regulatory push, and JPMorgan analysts led by Nikolaos Panigirtzoglou said Bitcoin remains more heavily hedged than gold, so reduced hedging demand can add support.
Quotes
“With or without that legislation, this Administration will deliver for American investors and technological innovators. Promises were made, and they will be kept.”
“The SEC's innovation exemption enables 24/7 onchain trading of tokenized $STRC and $MSTR for U.S. investors through qualifying venues.”