Regulator signals support for an “innovation exemption” to accelerate blockchain-based settlement
The push to bring US financial markets on-chain is accelerating after the Securities and Exchange Commission signaled support for tokenization and expanded blockchain-based settlement. SEC Chair Paul Atkins said the country’s markets are “poised to move on chain” following the agency’s recent greenlight for a major new tokenization initiative led by the Depository Trust and Clearing Corporation (DTCC).
The SEC issued a no-action letter allowing a DTCC subsidiary to launch a tokenization service capable of minting assets such as the Russell 1000 index, major ETF products, and US Treasury bills and bonds. Atkins described the move as an important milestone for on-chain capital markets, emphasizing that blockchainbased settlement could bring greater predictability, transparency, and operational efficiency.
Atkins also reiterated his proposal for an innovation exemption, a framework designed to let builders experiment with tokenized markets without facing burdensome regulatory friction as long as key protections remain in place. The exemption was first discussed publicly during the SEC’s Crypto Task Force Roundtable earlier this year.
The tokenization shift is backed by growing infrastructure investment. This week, Real Finance raised $29 million to develop an institutional layer for real-world asset (RWA) markets, while other blockchain projects have also received regulatory no-action support for custody and decentralized infrastructure development.
The DTCC pilot represents one of the most significant steps yet toward blockchain-native settlement in traditional finance, signaling that the transition to on-chain markets may advance faster than previously expected.
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