Tokenization stocks slide as legal concerns delay SEC innovation exemption

Tokenization-linked stocks have fallen as much as 11.2% after legal and market concerns reportedly delayed the SEC’s planned innovation exemption for blockchain-based securities. Summary Bullish fell 11.2%, extending its decline from about 8% earlier in Friday’s session. Coinbase and Circle dropped 3% and 4.8%, respectively, as tokenization-linked shares weakened. The SEC reportedly faces questions about its authority and the exemption’s effect on existing market rules. Uniswap’s UNI also fell as the regulatory delay reached beyond publicly traded companies. According to fresh reports on Friday, the Securities and Exchange Commission was preparing to delay its innovation exemption again after the White House and Wall Street firms raised concerns about its legal basis and possible effect on securities markets. The exemption was expected to reduce regulatory barriers for companies issuing and trading tokenized securities on blockchain networks. SEC officials were reportedly ready to disclose at least part of the plan alongside a separate meeting on Regulation Crypto before the agency canceled the session late Thursday. According to reports, White House officials were concerned that t...