TechFlame News — Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), and Commissioner Hester Peirce have indicated that regulators are considering introducing an "innovation exemption" for on-chain securities. This move aims to gradually facilitate the adoption of tokenized securities in the U.S. capital markets.

Atkins noted during the ETHDenver event that this exemption mechanism would allow limited trading of certain tokenized securities on new platforms, while also accumulating practical experience for the development of a long-term regulatory framework. Peirce reiterated that tokenized securities fundamentally remain within the scope of securities and should be advanced cautiously under the existing legal system.

Over the past year, traditional financial institutions, including Nasdaq and DTCC, along with several crypto companies, have explored tokenized stock offerings. If the SEC approves a relevant pathway, crypto platforms may be able to offer blockchain-based trading of traditional stocks, potentially competing with conventional brokerages.

Currently, global demand for tokenized stock trading continues to rise. Kraken reported that its xStocks product has accumulated a trading volume of $25 billion, while Robinhood’s RWA blockchain project saw over 4 million transactions in its first week after launch. The SEC stated that it will adopt a "step-by-step" approach to balance innovation with investor protection.