Current outcome
After the CLARITY Act stalled in the Senate, the SEC has granted a five-year 'Innovation Exemption' allowing tokenized NMS stocks to trade on permissioned automated market makers, while CFTC staff extended introducing-broker relief to passive software.
Progress timeline
3 material updates- #01
Crypto Industry Points to SEC and CFTC After CLARITY Setback
After the Senate blocked the CLARITY Act, crypto trade groups and executives are urging the SEC and CFTC to advance crypto regulation through agency rulemaking, noting that rules are less durable than legislation since future chairs can rewrite them.
Source evidence: The Defiant
- #02
SEC Clears a Path for Tokenized Stocks After Clarity Act Stumbles
The SEC introduced a five-year 'Innovation Exemption' allowing qualifying Tokenized Securities Venues to trade genuine tokenized U.S. stocks via automated market makers on permissionless blockchains without registering as national exchanges, following the Senate stall of the CLARITY Act.
State after update: After the CLARITY Act stalled in the Senate, the SEC has immediately opened a compliance pathway for tokenized U.S. stock trading through its 'Innovation Exemption,' lasting up to five years as a temporary bridge toward permanent rulemaking.
Source evidence: Decrypt
- #03
SEC Clears Tokenized Stocks To Trade Onchain As CFTC Widens Software Relief
CFTC staff extended introducing-broker relief to passive software, and the SEC's five-year tokenized U.S. stock exemption was specified as applying to permissioned automated market makers (rather than permissionless blockchains).
State after update: After the CLARITY Act stalled in the Senate, the SEC has granted a five-year 'Innovation Exemption' allowing tokenized NMS stocks to trade on permissioned automated market makers, while CFTC staff extended introducing-broker relief to passive software.
Source evidence: The Defiant