SEC’s Proposed ‘Innovation Exemption’ for Crypto Draws Fire from Traditional Exchanges

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The SEC‘s work on a new “innovation exemption” from securities laws is facing significant opposition from traditional stock exchanges.

The World Federation of Exchanges has written to the regulator, arguing that such an exemption for crypto companies wanting to sell tokenized stocks would be a mistake.

They contend that it would allow non-compliant firms to operate outside the strict rules that have long ensured market integrity and protected investors in traditional equity markets.