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Federal regulatory agencies are moving forward with digital asset frameworks despite legislative gridlock. Sam Lyman highlights the SEC launching a five-year innovation window for tokenized stocks and the OCC granting bank charters to crypto exchanges.
The SEC issued its Innovation Exemption on September 17th, permitting whitelisted tokenized stocks with voting rights to trade on public blockchains. The exemption bypasses broker-dealer registration for decentralized exchanges but imposes a daily trading volume cap of 0.25 percent.
SEC Chair Paul Atkin unveiled a five-year conditional innovation exemption allowing tokenized security venues to run automated market makers. To qualify, platforms must offer tokens representing real underlying stock ownership with full dividend and voting rights.
Bernstein analysts project aggressive, immediate rulemaking from the SEC and CFTC to compensate for the failed Clarity Act. Because these agency rules lack the permanence of legislation, David Bennett notes they remain vulnerable to being overturned by future administrations.
Prior to the vote, SEC Chair Paul Atkins stated readiness to issue regulations if the Clarity Act failed. This follows an August 19 SEC proposal allowing crypto projects to raise up to $75 million over 12 months with temporary safe harbor status.
Pablo Torre reports that federal agencies including the DOJ and SEC are investigating Los Angeles Clippers owner Steve Ballmer over secret side deals designed to circumvent the NBA salary cap for star player Kawhi Leonard.