Rule modifications that would allow companies greater flexibility in issuing tokenized securities are being considered by the U.S. Securities and Exchange Commission (SEC), according to a speech delivered by SEC Commissioner Hester Peirce and published on May 8.
The U.S. Securities and Exchange Commission is examining the possibility of exempting companies issuing tokenized securities from specific registration requirements.
The regulator is considering an exemptive order for companies using blockchain technology to issue, trade, and settle securities, which would relieve them of specific registration obligations, according to Peirce’s remarks in the speech.
Peirce noted that decentralized exchanges (DEXs) might receive exemptions from registering as a broker-dealer, clearing agency, or exchange. In the past, the SEC issued numerous Wells notices to DEXs like Uniswap, accusing them of failing to register as securities exchanges.
Peirce argued that companies should not have to follow outdated regulations created long before the emergence of today’s experimental technologies, especially when those technologies may eliminate the need for such rules.
The commissioner stated that companies would still need to comply with regulations designed to prevent fraud and market manipulation, even under such an exemption. Additionally, they may need to meet specific disclosure and recordkeeping obligations.
Significant Shift in Regulatory Policy
Since U.S. President Donald Trump assumed office in January, the SEC has significantly shifted its approach to cryptocurrency oversight.
During former SEC Chair Gary Gensler’s tenure, the agency filed over 100 lawsuits against cryptocurrency companies for allegedly violating securities laws.
However, since Trump nominee Paul Atkins took office as chair on April 21, the agency has asserted a more limited jurisdiction over cryptocurrencies.
In February, the SEC released guidance stating that memecoins—when explicitly recognized as purely speculative assets without intrinsic value—do not qualify as investment contracts under U.S. law.
In April, the regulator clarified that stablecoins—digital tokens tied to the U.S. dollar—do not qualify as securities if companies promote them solely as a payment method.
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