The U.S. Securities and Exchange Commission approved a five-year exemption allowing platforms to facilitate onchain trading of tokenized stocks on September 17, 2026, signaling the regulator will advance crypto rulemaking independently after Congress failed to pass the Clarity Act.
SEC Chairman Paul Atkins announced the decision in a statement, saying: “Congress was unsuccessful in advancing the Clarity Act despite the tireless efforts of many. So today, the Securities and Exchange Commission is taking a significant step forward, within its statutory authority, to bring America’s capital markets into the digital age by facilitating onchain trading of certain tokenized stocks.”
The exemption, formally called the “Innovation Exemption,” applies to secondary trading of tokenized securities on blockchain networks. Jamie Selway, Director of the SEC Division of Trading and Markets, said in a statement: “Today’s approval of exemptive relief for on-chain secondary trading on a TSV marks an important milestone for the Commission’s work to open our capital markets for tokenized securities.”
Legislative Stalemate Triggers Regulator Action
The SEC move follows the Clarity Act’s failure in the Senate. Lawmakers blocked the bill in a procedural vote, with the measure receiving 49 votes in favor and 50 against. The Clarity Act aimed to formally divide regulatory authority between agencies, distinguishing which digital assets are securities, commodities, or stablecoins.
President Trump urged lawmakers to pass the Clarity Act last month. Republicans accused Democrats of deliberately blocking the bill, while some lawmakers raised concerns about Trump family members profiting from crypto ventures. Trump and the White House denied any conflicts of interest.
Regulators Move Forward Without Congressional Action
The SEC’s approval reflects a broader commitment by federal regulators to proceed with crypto oversight independently. On September 16, 2026, Commodity Futures Trading Commission Chair Mike Selig stated the regulator would use its powers to advance crypto legislation despite the Clarity Act being blocked.
The five-year exemption represents the SEC’s first formal authorization for tokenized stock trading on blockchain platforms. The agency did not name specific platforms receiving the exemption or specify which tokenized stocks are eligible under the relief.
