SEC's 'Innovation Exemption' Isn't A Substitute For Legislation
The U.S. Securities and Exchange Commission's recently announced innovation exemption, allowing trading in certain tokenized securities on permissioned on-chain trading platforms, is a temporary and conditional solution for a specific market model, not a general exemption for on-chain securities trading, says Niels Lemmers at Flow Traders.
By Niels Lemmers ( November 4, 2026, 12:26 PM EST) -- On Sept. 15, the U.S. Senate failed to pass the cloture motion regarding further consideration of the Digital Asset Market Clarity Act.[1] As a result, consideration of the bill has come to a standstill for the time being.
It also means that, for now, there is no new legal framework defining the jurisdictions of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission....
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