web3: SEC Delays Exemption Plan, Tokenized Stocks Decline

CoinWorld reports:

The U.S. Securities and Exchange Commission (SEC) has delayed the advancement of a highly anticipated "innovation exemption," leading to a broad decline in tokenized-related stocks and crypto assets on Friday. Companies such as Bullish, Coinbase, and Circle saw their stock prices drop, and Uniswap's UNI also experienced a noticeable retreat.

Multiple Related Assets Decline

Bullish saw a drop of about 8% in early trading on Friday, giving back some of the gains made after its earnings report. The company is positioning itself for the issuance and service infrastructure of tokenized securities through the acquisition of transfer agent Equiniti. Blockchain lending institution Figure also retreated from its previous trading day's high, with a decline of about 9%.

Coinbase fell approximately 2%. The exchange is advancing its own tokenized stock product and has selected Abu Dhabi as its offshore business hub. Stablecoin issuer Circle dropped nearly 4%. In addition to USDC, Circle also operates the tokenized U.S. Treasury product USYC, currently managing about $3 billion in assets.

SEC Delays Two Arrangements

Market sentiment weakened primarily due to the SEC's further postponement of the "innovation exemption." This exemption was originally seen as a means to help companies more easily provide tokenized securities trading services. Reports indicate that there are concerns from both the White House and Wall Street regarding the legal basis and potential market impact of this plan, leading to its shelving.

Meanwhile, the SEC also canceled a meeting originally scheduled for Friday. Commissioners had planned to discuss whether to propose a customized issuance rule for certain investment contracts involving crypto assets. The simultaneous delay of both arrangements has led to a more cautious outlook on the regulatory path for tokenized securities in the U.S.

DeFi Sector Also Under Pressure

The impact of this delay is not limited to publicly listed companies. The market had originally anticipated that the "innovation exemption" could also provide some regulatory buffer for securities trading on decentralized finance platforms, so the announcement has similarly pressured the DeFi sector.

Uniswap's UNI dropped 7% in the past 24 hours, becoming one of the weakest components in the CoinDesk 20 index for the day and the week. In contrast, the Nasdaq 100 index, S&P 500 index, and Bitcoin showed little overall volatility on the day, indicating that selling pressure is more concentrated on tokenized and related regulatory beneficiary assets.

Institutions Say Long-Term Direction Unchanged

Owen Lau, Managing Director at Clear Street, stated that this development feels more like the tokenization theme hitting a "speed bump" rather than a trend reversal. He believes that the regulatory delay may extend the timeline for the rollout of tokenized assets in the U.S., but it will not change the long-term development direction.

He noted that Coinbase and Bullish are still seeking to launch tokenized stock products, and traditional trading venues such as Nasdaq and the New York Stock Exchange are also building 24-hour trading infrastructure. The current significant change is in the timeline being extended, rather than the related business direction being negated.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.