US SEC Chairman: Plans to introduce an "Innovation Exemption" mechanism to support compliant on-chain trading of tokenized securities

Paul Atkins, the Chairman of the SEC, delivered a speech on the first anniversary of his inauguration at the Washington Economic Club, stating that the SEC is advancing reforms to the regulatory framework for digital assets and incorporating it into the "A - C - T" strategy, which aims to modernize regulation, clarify regulatory boundaries, and reshape the rule system.

Regarding crypto assets, the SEC has released a classification system for crypto tokens, dividing digital assets into five categories, four of which do not fall under securities. It indicated that the SEC is about to launch an "innovation exemption" mechanism to provide a limited framework for market participants to conduct tokenized securities trading on-chain in a compliant manner, and has initiated Project Crypto to adapt securities rules and regulatory systems to the trend of capital markets moving on-chain.

Additionally, the SEC signed a Memorandum of Understanding (MOU) with the CFTC last month to unify key definitions, clarify regulatory jurisdictions, and coordinate joint regulatory matters, including digital assets. Paul Atkins also stated that the previous regulatory approach to crypto assets in the U.S. had led to innovation activities flowing overseas.