SEC Considers Regulatory Tweaks to Support Tokenization Ecosystem

The US SEC is exploring a potential “innovation exemption” as part of broader efforts to support the fast-growing tokenization ecosystem, Chairman Paul Atkins said Thursday.

His comments followed the House passage of a landmark stablecoin bill that could significantly reshape the digital asset landscape, Bloomberg reported.

Speaking at a press event shortly after lawmakers approved the GENIUS Act, the CLARITY Act, and a third key crypto bill, Atkins said SEC staff is now examining whether to ease certain regulatory barriers.

These changes could include new allowances for novel trading models and narrowly tailored relief measures to help build out the infrastructure required for tokenized securities.

SEC Prepares Regulatory Shift as Stablecoin Rules Advance

“Staff is considering what other changes may be appropriate to incentivize tokenization within our regulatory framework,” he said, adding that this could involve an innovation exception designed to accommodate new market structures.

The timing is significant. The US House cleared the stablecoin legislation earlier in the day, sending it to President Donald Trump for final approval. The bill outlines clear regulatory guardrails for dollar-backed stablecoins, requiring issuers to hold reserves in short-term government debt or similar safe assets overseen by state or federal regulators.

Atkins welcomed the legislation,saying the SEC is eager to establish “clear rules of the road” for the broader digital asset industry.

Atkins Charts New Course for SEC With Pro-Tokenization Stance

The chairman’s tone marks a sharp departure from that of his predecessor, Gary Gensler, whose tenure was defined by aggressive enforcement actions. Atkins has already indicated he plans to roll back several Gensler-era policies, including a controversial rule that allowed brokers to act as digital asset custodians.

The SEC’s openness to regulatory flexibility comes as both traditional financial firms and blockchain-native companies race to tokenize real-world assets. Some are focused on wrapping popular US stocks into tokenized forms, while others aim to offer tokenized products linked to private markets.

“It’s hard to say exactly where things will go or what will happen, but, you know, assets clearly are moving on chain,” Atkins said. “So if it can be tokenized, it will be tokenized.”

Private Credit and US Treasuries Drive Tokenization Boom

His remarks come amid growing momentum in the tokenization space. Many analysts now see it as a transformative shift for capital markets. In 2025 alone, tokenized real-world assets have surged.

So far this year, market value has climbed more than 260%. According to a report by Binance Research, the sector has reached $23b. That is up from just $8.6b at the start of January.

Much of that growth has come from tokenized private credit, which makes up 58% of the market. Tokenized US Treasury debt follows closely, accounting for 34%. Together, these two categories represent 92 percent of the total market for tokenized assets.

Earlier this month, Atkins described tokenization as “the next step” in bringing greater efficiency to traditional financial systems. He also hinted that a broader shift toward on-chain markets is now imminent.

As policymakers move to catch up with technological innovation, the SEC’s willingness to carve out targeted exemptions could prove critical. If adopted, the innovation exception could give tokenization efforts the breathing room needed to scale, without falling afoul of outdated compliance rules.

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