SEC Delays Tokenization Exemption Again Amid Wall Street Pushback

The SEC has delayed its planned “innovation exemption” for tokenized securities after pushback from the White House and Wall Street, according to people familiar with the matter. The exemption was expected to be partly unveiled at an open meeting this Friday, which the agency canceled late Thursday.

Sources say the White House feared the move could complicate ongoing talks over the Digital Asset Market Clarity Act in Congress. SEC staff also raised doubts about their legal authority to issue such broad relief.

Wall Street Group Raises Objections

Trade group SIFMA has pushed back hard, arguing blockchain trading platforms raise unresolved questions around brokers’ duty to secure best execution prices. It wants such changes handled through formal public comment, not exemptions.

This marks the second delay this year. Tokenization remains a fast-growing trend, with Citi projecting the market could hit $5.5 trillion by 2030.