SEC Commissioner Peirce Outlines Proposed Innovation Exemption for Tokenized Securities
Key Takeaways
- 01Commissioner Hester Peirce discussed a potential SEC Innovation Exemption in remarks dated September 23, 2026.
- 02The proposed exemption would facilitate limited trading of tokenized securities on crypto networks using automated market makers.
- 03Time and transaction-size limits would restrict the exemption’s scope, making it a controlled testing pathway rather than a general exemption.
- 04The proposal could offer tokenized-securities platforms a route to test trading models while the SEC develops the exemption’s detailed conditions.
In September 23, 2026 remarks to SIFMA’s Digital Assets Conference, SEC Commissioner Hester Peirce described an SEC “Innovation Exemption” intended to support trading in tokenized securities on crypto networks.
The proposal would create a limited exemption, restricted by time and transaction size, for tokenized-securities activity using automated market makers (AMMs). An AMM is a blockchain-based trading mechanism that uses code and pooled assets to quote and execute trades rather than a conventional order book.
The exemption would aim to let market participants test tokenized-securities trading models that may not fit easily within existing securities-market rules. Its limits would constrain the scale and duration of eligible activity rather than create a broad, permanent regulatory safe harbor.