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The US SEC is considering a possible “innovation exemption” as part of its wider initiatives to bolster the rapidly expanding tokenization ecosystem, Chairman Paul Atkins stated on Thursday.
His remarks came after the House approved a significant stablecoin bill that has the potential to greatly alter the digital asset landscape, as reported by Bloomberg.
During a press conference shortly after lawmakers endorsed the GENIUS Act, the CLARITY Act, and another crucial crypto bill, Atkins mentioned that SEC staff is currently evaluating the possibility of relaxing certain regulatory constraints.
These adjustments may involve new provisions for innovative trading models and specifically designed relief measures to facilitate the development of the infrastructure necessary for tokenized securities.
SEC considering innovation exemption from regulations to promote tokenization…
SEC Chair Paul Atkins: “Assets clearly are moving on chain. If it can be tokenized, it will be tokenized.”
*SEC Chair*
Read that again.
Hope you’re paying attention.
via @yashroy87 @ElleBeyoud pic.twitter.com/C675D5ihLv— Nate Geraci (@NateGeraci) July 18, 2025
SEC Prepares for Regulatory Changes as Stablecoin Legislation Advances
“Staff is evaluating what additional modifications may be suitable to encourage tokenization within our regulatory framework,” he stated, noting that this could include an innovation exemption aimed at accommodating new market structures.
The timing is noteworthy. Earlier in the day, the US House passed the stablecoin legislation, which is now set to be sent to President Donald Trump for final approval. The bill establishes clear regulatory guidelines for dollar-backed stablecoins, mandating that issuers maintain reserves in short-term government securities or similar safe assets supervised by state or federal regulators.
Atkins expressed support for the legislation, indicating that the SEC is keen to establish “clear rules of the road” for the wider digital asset sector.
Atkins Charts New Direction for SEC With Pro-Tokenization Approach
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The chairman’s stance represents a significant shift from that of his predecessor, Gary Gensler, whose term was characterized by stringent enforcement actions. Atkins has already signaled his intention to reverse several policies from the Gensler era, including a contentious rule that permitted brokers to serve as digital asset custodians.
The SEC’s readiness for regulatory adaptability coincides with the efforts of both traditional financial institutions and blockchain-native companies to tokenize real-world assets. Some are concentrating on converting popular US stocks into tokenized versions, while others are working to provide tokenized products linked to private markets.
“It’s difficult to predict exactly where things will lead or what will transpire, but, you know, assets clearly are moving on chain,” Atkins remarked. “So if it can be tokenized, it will be tokenized.”
Private Credit and US Treasuries Fuel Tokenization Surge
His comments arrive amid increasing momentum in the tokenization sector. Numerous analysts now regard it as a transformative change for capital markets. In 2025 alone, tokenized real-world assets have experienced significant growth.
This year, market value has increased by over 260%. According to a report from Binance Research, the sector has reached $23 billion, up from just $8.6 billion at the beginning of January.
A substantial portion of that growth has originated from tokenized private credit, which constitutes 58% of the market. Tokenized US Treasury debt closely follows, making up 34%. Together, these two segments account for 92 percent of the overall market for tokenized assets.
Earlier this month, Atkins referred to tokenization as “the next step” in enhancing efficiency within traditional financial systems. He also suggested that a broader transition toward on-chain markets is now on the horizon.
As regulators strive to keep pace with technological advancements, the SEC’s readiness to establish targeted exemptions could be crucial. If implemented, the innovation exemption could provide tokenization initiatives the necessary space to grow without contravening outdated compliance regulations.
The post SEC Considers Regulatory Tweaks to Support Tokenization Ecosystem appeared first on Cryptonews.
