Wall Street accelerates tokenization amid stalled U.S. crypto legislation

Despite the Clarity Act stalling in the U.S. Senate, Wall Street institutions are accelerating efforts toward asset tokenization. Intercontinental Exchange (ICE), the parent company of the NYSE, has announced a joint venture with the crypto exchange OKX to create OKXICE, a platform dedicated to trading tokenized stocks.

This movement is supported by recent Securities and Exchange Commission (SEC) actions. The SEC has introduced a “innovation exemption” that allows for the trading of tokenized stocks under specific conditions, such as providing 30 days' notice to issuing companies. Additionally, the SEC’s Regulation Crypto Assets proposal is currently in its public comment phase, which is set to close on October 20.

The proposed regulatory framework includes specific exemptions from Securities Act registration. One exemption allows startups to offer up to $5 million over four years, while a fundraising exemption allows for up to $20 million or $75 million annually, depending on whether audited financials are provided. These rules aim to establish a federal offering regime for crypto assets, focusing on token economics, governance mechanics, and code security.