- The SEC is developing an Innovation Exemption and rules for on-chain fundraising under its existing authority.
- Atkins said tokenized securities should preserve the actual rights and privileges of the underlying securities.
- The SEC chair said stablecoin oversight falls outside the agency’s remit, pointing to the GENIUS Act for related safeguards.
SEC Chairman Paul Atkins said the agency will advance rules for on-chain fundraising and tokenized securities despite Congress failing to pass the CLARITY Act. Speaking in Washington on September 29, Atkins outlined the SEC’s ongoing work under its existing authority. He said the agency aims to provide regulatory clarity for innovators and investors developing digital financial products in the United States.
SEC Develops Framework for Tokenized Securities
Atkins said the SEC and Commodity Futures Trading Commission issued a joint interpretive release defining tokenized securities and other tokenized assets. The distinction helps clarify which regulator oversees different digital financial products.
The SEC has also proposed a rule addressing on-chain fundraising, while its Innovation Exemption would establish a controlled environment for tokenized securities. Atkins described the exemption as a sandbox where companies could issue tokens representing the actual rights and privileges of underlying securities.
He distinguished this approach from offshore products that provide synthetic exposure without direct ownership rights. Atkins said the SEC wants tokenized securities traded on-chain while preserving the rights attached to the underlying assets.
The Senate rejected a motion to advance the CLARITY Act on September 15, with a 49–50 vote. Atkins had previously said the SEC would continue developing crypto rules using its existing authority. However, he has also described legislation as indispensable for long-term regulatory certainty.
Atkins Addresses Stablecoins and Tokenization Concerns
During the interview, Atkins was asked about AMC CEO Adam Aron’s objections to tokenized stocks. Aron raised concerns about products that track share prices without providing governance rights. Atkins did not address AMC directly but said the SEC’s framework would require tokens to represent actual securities.
Atkins also discussed concerns about Tether’s USDT and its alleged use by Iran. He said stablecoin oversight falls outside the SEC’s remit and pointed to the GENIUS Act’s anti-money laundering and sanctions provisions.
IPO Activity and Private Credit Valuations
Atkins reported that 583 companies had gone public since he became chairman, raising approximately $208 billion. He said this represented a 75% increase over the comparable prior period.
He also addressed private credit valuations, emphasizing that values depend on each instrument and fund. Atkins said market participants must follow generally accepted accounting principles when valuing assets.
