SEC Pulled Crypto Exemption Ahead of CLARITY Vote, Securitize Says

Securitize CEO Carlos Domingo backed a restricted approach, saying the industry should pursue on-chain trading using the appropriate assets rather than encourage derivatives that could fragment the market. Redfearn had raised similar concerns in May about third parties tokenizing stocks without the underlying issuer's participation, warning that multiple wrappers around the same public company could leave investors less certain about each product's value.

The CLARITY Act has spent much of 2026 moving through Congress. The Senate Banking Committee advanced it 15-9 in May, with 13 Republicans and two Democrats in favour. The measure then went to the Senate Legislative Calendar, eligible for floor consideration without another committee vote.

A June analysis found the legislation faced a difficult math problem. Republicans held 53 seats at the time, not the 60 needed to overcome a filibuster alone. Democratic Sens. Ruben Gallego and Angela Alsobrooks had supported the bill at committee level but warned their votes did not guarantee support for final passage.

Lawmakers had initially discussed completing work before the August recess. The Senate left Washington without holding the expected floor vote. Before the recess, negotiations covered ethics provisions, stablecoin rules, illicit finance safeguards and protections for developers of non-custodial blockchain software. The Senate also had to reconcile policy work from the Banking and Agriculture committees.

While the innovation exemption remains pending, the SEC has continued developing other crypto rules under existing authority. On Aug. 18, the agency proposed a framework covering certain crypto offerings and transactions. It includes a one-time exemption allowing qualifying issuers to raise up to $5 million over four years and another pathway for eligible offerings of up to $75 million annually, subject to disclosure and reporting requirements. The SEC also proposed a safe harbour that could let certain crypto assets sold through investment contracts stop being treated under that framework once conditions are met.

Securitize has been expanding its own tokenized securities infrastructure. In July, the company tokenized its NYSE-listed common stock on Solana and Avalanche on the same day it began public trading. The blockchain-based shares trade under the SECZ ticker and represent the same common stock, not a separate equity class. The launch followed a $400 million SPAC transaction and made Securitize the first newly public company to tokenize its own common shares on its first day of NYSE trading.