SEC Approves Tokenized Stock Trading Despite Clarity Act Setback

The U.S. Securities and Exchange Commission has given the green light to trading in tokenized equities, a signal that the agency intends to proceed with its rulemaking agenda even though the Clarity Act has stalled. 

On Thursday, the top Wall Street regulator announced a five-year exemption for platforms dealing in tokenized stock trades. For years, major crypto firms have sought to bring such assets onto the blockchain. 

The Clarity Act was blocked by lawmakers in a procedural vote on Tuesday. Ahead of that vote, regulators had indicated they would begin overseeing the crypto sector regardless of whether the significant piece of legislation passed. 

Today, we are taking a significant step forward, within our statutory authority, to bring America’s capital markets into the digital age by facilitating onchain trading of certain tokenized stocks through the "Innovation Exemption."  https://t.co/BQK0cS70lH

— Paul Atkins (@SECPaulSAtkins) September 17, 2026

"Congress was unsuccessful in advancing the Clarity Act despite the tireless efforts of many," SEC Chairman Paul Atkins said in a statement. 

"So today, the Securities and Exchange Commission is taking a significant step forward, within its statutory authority, to bring America’s capital markets into the digital age by facilitating onchain trading of certain tokenized stocks."

Jamie Selway, Director of the SEC Division of Trading and Markets, added: "Today’s approval of exemptive relief for on-chain secondary trading on a TSV–known as the ‘Innovation Exemption’–marks an important milestone for the Commission’s work to open our capital markets for tokenized securities."

The SEC’s move follows a pattern of regulators forging ahead even as major crypto legislation hits roadblocks. On Wednesday, Commodity Futures Trading Commission Chair Mike Selig said the agency would use its existing authority to push crypto policy forward despite the Clarity Act’s failure. 

The Clarity Act is designed to formally divide oversight among regulators, clarifying which digital assets count as securities, commodities, or stablecoins. 

Last month, President Donald Trump urged lawmakers to pass the bill, but senators largely voted against advancing it — 49 in favor and 50 opposed — a blow to the digital asset industry that had long pushed for such legislation. 

For months, Republicans have accused Democrats of deliberately stalling the bill. Some lawmakers raised concerns about Trump’s family earning money from crypto ventures, though Trump and the White House have consistently denied any conflicts of interest.