The US Securities and Exchange Commission (SEC) is contemplating new rules to facilitate the issuance of tokenized securities. SEC Commissioner Hester Peirce announced on May 8 that the regulator is considering a potential exemptive order that would relieve blockchain companies from certain registration requirements associated with securities. This exemption could allow decentralized exchanges (DEXs) to operate without needing to register as broker-dealers or exchanges, a point underscored by past SEC actions against platforms like Uniswap for failing to comply with registration laws. According to Peirce, firms should not be burdened by outdated regulations that were established before these technologies emerged. However, companies benefiting from these exemptions would still need to adhere to regulations aimed at fraud prevention and market manipulation, along with certain disclosure and recordkeeping duties. The SEC's approach has evolved significantly, particularly after the tenure of former chair Gary Gensler, with recent guidance narrowing the agency's focus on cryptocurrencies, including memecoins and stablecoins.

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