Regulatory uncertainty hits tokenization plays
Shares of tokenization-focused firms including Bullish, Figure, Coinbase and Circle declined Friday as the SEC delayed its planned “innovation exemption” for tokenized securities and canceled a scheduled meeting on proposed crypto offering rules.
Bullish (BLSH) fell 8% in early trading. Figure (FIGR) dropped 9% from Thursday’s session high. Coinbase (COIN) declined 2%, while Circle (CRCL) fell 4%. Securitize (SECZ) slipped 5% earlier in the session, following a 27% plunge on Thursday. Over the past 24 hours, Uniswap’s UNI token declined 7%.
The SEC’s decision to postpone the exemption and cancel Friday’s meeting reflected mounting pressure from the White House and Wall Street over the proposal’s legal footing and potential market impact. The innovation exemption was expected to make it easier for companies to offer trading in tokenized securities and provide regulatory relief for trading through decentralized finance venues.
Infrastructure buildout continues despite delay
Bullish is acquiring transfer agent Equiniti to build infrastructure for issuing and servicing tokenized securities. Coinbase is pursuing its own tokenized-stock offering and recently selected Abu Dhabi as an offshore hub. Circle operates the USYC tokenized Treasury product, which holds 3 billion dollars in assets.
Securitize serves as BlackRock’s tokenization partner and issues the BUIDL tokenized Treasury fund. Nasdaq and the New York Stock Exchange are developing infrastructure for round-the-clock trading of tokenized assets.
Analyst assessment
“The tokenization theme hits a speed bump, but it doesn’t alter the underlying momentum,” said Owen Lau, managing director and senior analyst at Clear Street.
Questions surrounding the CLARITY Act and the SEC’s legal authority could lengthen the adoption curve of tokenization, according to market participants tracking the regulatory landscape.
