Despite the U.S. Senate’s failure to advance the Digital Asset Market Clarity Act, the U.S. Securities and Exchange Commission (SEC) continues to move forward with proposed rules and releases related to crypto assets.
On September 17, 2026, the SEC issued a temporary, conditional “Innovation Exemption” to facilitate trading in tokenized National Market System (NMS) stock. SEC Chairman Paul S. Atkins stated the Commission was “taking a significant step forward, within its statutory authority, to bring America’s capital markets into the digital age by facilitating onchain trading of certain tokenized stocks through the ‘Innovation Exemption.’” Chairman Atkins characterized the measure as provisional, explaining that it “would allow [Tokenized Securities Venues] to trade tokenized NMS stock in a permissioned environment today while the Commission considers the need for additional action” and inviting “public comment on all aspects of the Innovation Exemption.”
Despite the U.S. Senate’s failure to advance the Digital Asset Market Clarity Act, the U.S. Securities and Exchange Commission (SEC) continues to move forward with proposed rules and releases related to crypto assets.
The SEC’s most recent action adds to what has been a notable 2026—a year that included its March 17, 2026, Interpretive release explaining how federal securities laws apply to certain crypto assets and transactions (2026 Interpretive Release), and its August 21, 2026, proposed rule, “Regulation Crypto Assets.” Together with the September 17, 2026, Innovation Exemption, the proposed rules and releases generally address crypto assets on three fronts: (i) how crypto assets are classified under the federal securities laws, (ii) how those that are subject to the securities laws may be offered, and (iii) how tokenized securities may be traded.
This article, coauthored by Nicole Moran, Robert Letson, and Pawel Bednarek, provides an overview of the 2026 Interpretive Release, Regulation Crypto Assets, and the recently announced Innovation Exemption along with implications of which securities are covered and what restrictions are placed on trading venues.