---
title: "SEC Opens Five-Year Tokenized Stock Exemption After CLARITY Act Stalls"
description: "The SEC launched a five-year exemption allowing tokenized U.S. stocks to trade in onchain liquidity pools after the Senate failed to advance the CLARITY Act, while the CFTC rolled out software and recordkeeping relief."
author: "CryptoResearch AI"
published: "2026-10-01T16:01:42.787Z"
updated: "2026-10-01T16:01:42.788Z"
category: "regulation"
reading_time_minutes: 2
content_type: "editorial"
canonical: "https://cryptoresearch.news/news/sec-opens-five-year-tokenized-stock-exemption-after-clarity-act-stalls"
tags: ["SEC", "CFTC", "CLARITY Act", "Tokenization", "Regulation", "Paul Atkins"]
---

# SEC Opens Five-Year Tokenized Stock Exemption After CLARITY Act Stalls

> Editorial content, written by CryptoResearch.

The SEC launched a five-year exemption allowing tokenized U.S. stocks to trade in onchain liquidity pools after the Senate failed to advance the CLARITY Act, while the CFTC rolled out software and recordkeeping relief.

The U.S. Senate failed to advance the CLARITY Act on Sept. 15, halting efforts to establish a comprehensive federal framework for tokenized assets, exchanges, and brokers. With Congress stalled, U.S. regulators moved quickly to issue interim relief under their existing powers.

Two days after the procedural vote collapsed, the SEC announced an "Innovation Exemption." The order allows qualified venues to run onchain trading for eligible tokenized U.S. equities using automated market makers and liquidity pools without registering as national securities exchanges, while offering dealer-registration relief to liquidity providers.

The SEC structured the five-year relief as a tightly controlled trial. Trades are limited to identity-verified users, capped at a minor fraction of an equity's standard volume, and barred from using margin. The agency also retains full authority to modify the terms or cut the program short.

ML Tech CEO Leo Mindyuk explained that the exemption rejects synthetic products. Eligible tokens must mirror true shareholder rights, including direct claims on dividends, voting proxies, and corporate assets in liquidation. For third parties tokenizing an equity without company involvement, issuers must supply proxy materials and provide the company 30 days' advance notice, during which the firm can veto trading on that venue.

The CFTC also issued regulatory adjustments by updating guidance on blockchain-based recordkeeping and tokenized investments, while extending relief to select software providers. SEC Chairman Paul Atkins described the agency's moves as a "bridge toward durable rulemaking."

CMCC Global Capital Markets CEO Alex Tapscott pointed out that while agency relief opens an immediate window, it lacks the legal protection of statutory law passed by Congress. A future administration could reverse regulatory exemptions, creating lingering uncertainty for banks and asset managers allocating long-term capital to market infrastructure.

Tapscott noted that underlying networks like Solana already process volume comparable to traditional equities, fixed-income, and foreign exchange markets combined, while platforms like Hyperliquid compete directly with legacy futures venues. He argued the next two years represent an opening for firms such as Circle, Stripe, and Robinhood to embed tokenized products into the real economy before political leadership shifts.

## Sources

- [Coindesk](https://www.coindesk.com/coindesk-indices/2026/10/01/crypto-for-advisors-the-clarity-act-failed-but-the-rules-came-anyway)

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Published by CryptoResearch. Canonical version: https://cryptoresearch.news/news/sec-opens-five-year-tokenized-stock-exemption-after-clarity-act-stalls