Bullish fell 8%, Figure dropped 9% after the SEC canceled a meeting on tokenized securities rules. Clear Street's Owen Lau said the delay is temporary; no new meeting date set.
Tokenization stocks slid Friday. Bullish, ticker BLSH, fell about 8% in early trading, wiping out gains from a solid second-quarter report. Figure, trading as FIGR, dropped 9% from its Thursday high. Coinbase lost 2%. Circle, ticker CRCL, slid nearly 4%.
The move followed a regulatory setback. The Securities and Exchange Commission had been working on an "innovation exemption," a carve-out for tokenized securities. White House officials and Wall Street firms raised concerns about the legal basis of the proposal. A scheduled SEC meeting on crypto asset investment contract rules was canceled. No rescheduled date has been set.
Owen Lau, an analyst at Clear Street, called the delay a temporary obstacle. The push toward tokenization remains intact, he said. Companies are still building infrastructure. Coinbase and Bullish are both chasing tokenized equities. Traditional exchanges like Nasdaq and the New York Stock Exchange are developing 24/7 trading systems.
Lau's assessment carries a caveat. "Temporary" could mean months or longer. The CLARITY Act remains under debate in Congress. Questions about which regulator has authority over tokenized products are unresolved. That ambiguity may stretch the adoption timeline, Lau said.
Uniswap's UNI token fell 7% over 24 hours, the worst performer in the CoinDesk 20. DeFi platforms had expected regulatory relief to open doors for decentralized trading venues. The canceled meeting closed that door for now.
Circle's position draws attention. Its USYC tokenized Treasury product holds about $3 billion in assets. Any further regulatory uncertainty hits Circle from multiple directions, given USDC's role as a stablecoin backbone. Bullish's acquisition of transfer agent Equiniti is still pending, a deal built on the expectation of clearer rules.
The broader market showed little reaction. The Nasdaq 100 and S&P 500 were flat. Bitcoin was flat as well. The selloff was concentrated in tokenization-exposed names.
Lau said the destination hasn't changed. No new meeting date has been set for the SEC's crypto asset rules.
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