SEC Chair Paul Atkins said the SEC is moving forward with its “Innovation Exemption” after Congress failed to advance the CLARITY Act.

Key exemptions include:

• Tokenized Securities Venues (TSVs) exempt from the definition of “exchange”
• Certain liquidity providers exempt from the definition of “dealer”
• Permissioned access only
• No synthetic tokenized stocks
• Issuers can object to the trading of their securities

Anti-fraud and anti-manipulation rules remain fully in effect.

The exemption is temporary and conditional, allowing the SEC to facilitate onchain trading of certain tokenized stocks while it considers longer-term rules.