SEC Delays Release of Innovation Exemption Framework

The US Securities and Exchange Commission (SEC) has announced a delay in the release of its 'innovation exemption' framework, which aimed to allow domestic crypto firms to issue and trade tokenized securities without full registration.

The delay comes after Nasdaq, NYSE, and Cboe leadership pushed back on the proposed framework, citing concerns over market structure and retail protections. The exchanges argued that the draft framework would carve out a parallel trading venue that bypassed Regulation NMS, CAT reporting, and retail-protection rules governing every other US equity venue.

The SEC had previewed the rollout as 'imminent' in May 2026, but the delay means that the exemption is still in development. A revised timeline is expected to be released in the coming months, with industry experts predicting a heavier framework that incorporates market-structure annexes and requires tokenized-equity venues to register as ATSs or route through NMS-registered exchanges.

The delay has significant implications for the crypto industry, particularly for firms such as Robinhood and Coinbase, which had built product roadmaps assuming the exemption would ship in 2026. The delay also benefits offshore issuers, who can continue to trade tokenized equities without competition from a regulated US alternative.