SEC's 'Innovation Exemption' Unlocks Tokenized Stock Trading, Sparking Crypto Rally
The SEC has granted a five-year temporary exemption allowing specific platforms to trade tokenized U.S. stocks, a move that triggered a sharp rally in crypto-linked equities. The order, part of the agency's 'Project Crypto,' requires token holders to retain traditional shareholder rights and allows companies to opt out. While the exemption aims to modernize capital markets, it follows the failure of the broader CLARITY Act in the Senate, leaving long-term regulatory clarity uncertain.
