SEC Delays Plan to Allow Crypto Versions of U.S. Stocks
By Scott Patterson | May 22, 2026
The U.S. Securities and Exchange Commission (SEC) has postponed the rollout of a significant regulatory initiative that would have granted broad exemptions to cryptocurrency firms, enabling them to trade tokenized assets linked to U.S. stocks.
According to individuals familiar with the matter, the SEC’s staff were preparing to release what is informally called an "innovation exemption" designed to facilitate trading in tokenized securities. This exemption would have provided legal clarity and regulatory leeway for crypto companies looking to offer digital versions of traditional stocks. However, the plan—expected as early as this week—has been delayed, with no new timeline announced.
A draft of the regulatory framework had reportedly been developed and was under internal review by the SEC team. Sources, speaking on condition of anonymity, indicated that the delay may reflect ongoing deliberations over the implications and enforcement challenges related to tokenized securities in the crypto ecosystem.
The innovation exemption was anticipated to be a landmark step in integrating blockchain technology with conventional financial instruments, potentially expanding market access and liquidity. Nevertheless, the SEC’s cautious approach underscores the complexities involved in regulating new financial products that straddle the boundary between traditional securities and novel digital assets.
The agency has not provided an official statement regarding the delay. Market participants and observers remain watchful as the SEC continues to navigate the evolving landscape of tokenized assets and digital securities regulations.
Contact Bloomberg for further details and updates.