SEC Fires Shot Across the Bow at Legacy Incumbents with Tokenized Asset Boost

The US Congress's efforts to regulate digital assets have been slow-moving, but financial regulators are taking matters into their own hands. Project Crypto, an initiative led by the White House, SEC, and CFTC, aims to bring digital assets and blockchains into the mainstream financial system.

In a surprising move, the SEC has voted to propose the removal of two outdated rules related to electronic order books and trading. These rules were created in 2005 for a different era of trading and are no longer relevant in today's decentralized finance (DeFi) landscape.

The proposed rule change is significant because it would allow tokenized stocks to be traded onchain without violating SEC regulations. This development is part of the broader push by financial regulators to accommodate digital assets, and it doesn't require Congress's permission via the Clarity Act.

The banks are trying to stall the passage of the Clarity Act, which would provide a framework for regulating digital assets in the US. However, with this latest move by the SEC, it's clear that regulators are not waiting around for Congress to act.