Proposed Exemptions Could Lower Regulatory Barriers for Tokenized Securities and DEXs

The U.S. Securities and Exchange Commission (SEC) is considering significant rule changes that could make it easier for firms to issue and trade tokenized securities using blockchain technology, according to remarks made by Commissioner Hester Peirce in a May 8 speech.

Peirce said the agency is exploring a potential “exemptive order” that would free certain companies issuing and settling securities on blockchain networks from traditional registration requirements — a move that could benefit decentralized exchanges (DEXs) and tokenization platforms.

“Firms should not have to comply with inapt regulations developed well before the technologies being tested existed,” Peirce stated.

Under the proposal, DEXs and other blockchain-native platforms might not be required to register as:

• Broker-dealers

• Clearing agencies

• National securities exchanges

The exemption, however, would still include requirements to prevent fraud and market manipulation, and firms would need to meet disclosure and recordkeeping obligations.

Marking a Sharp Shift in SEC Crypto Policy

The remarks signal a substantial departure from the SEC’s previous stance under former Chair Gary Gensler, who oversaw over 100 enforcement actions against crypto firms for alleged securities violations.

Now under Chair Paul Atkins — a Trump appointee sworn in on April 21 — the SEC is adopting a more narrow and innovation-friendly approach to crypto regulation.

Recent developments under the new leadership include:

• February: SEC clarified that memecoins, when clearly identified as speculative and devoid of intrinsic value, do not constitute securities

• April: SEC said that stablecoins pegged to the U.S. dollar and used strictly as payment tools also fall outside securities law

Peirce’s latest comments suggest the agency is willing to modernize its framework to better align with the technological capabilities of blockchain — especially in areas where legacy systems and legal definitions may no longer apply.

“This is about acknowledging that innovation in how securities are issued and traded should not be strangled by legacy rules that were never designed for this environment,” Peirce added.

Implications for the Industry

If approved, the exemptive order could:

• Accelerate the adoption of security tokens, particularly for startups and fintech firms

• Provide legal clarity for DEX operators such as Uniswap, which previously received a Wells notice from the SEC for allegedly failing to register as a securities exchange

• Open the door for new tokenized asset classes to enter the market, including tokenized stocks, bonds, and real-world assets (RWAs)

While no official timeline has been announced for the exemption’s release, the statement from Peirce indicates that internal discussions are well underway.

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Final Thoughts: Regulatory Flexibility Meets Blockchain Innovation

The SEC’s consideration of new exemptions for tokenized securities marks a landmark moment in the evolution of crypto regulation in the U.S.

Under a more innovation-forward leadership, the agency appears poised to foster a more inclusive, tech-aware regulatory framework — one that encourages experimentation while maintaining core investor protections.

For startups, DEXs, and institutional players alike, the proposed changes could finally deliver the regulatory clarity needed to scale blockchain-based finance within the U.S. market.