stable coins

Story: Tokenization Stocks Drop as SEC Shelves Innovation Exemption, Hitting Bullish and Figure Hard

By Pankaj K

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What the SEC Actually Delayed. The SEC had been working toward what the industry calls an "innovation exemption" — basically a…

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Owen Lau's Take and the Longer Road Ahead. Owen Lau, an analyst at Clear Street, said the delay is a temporary obstacle — not a fundamental…

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What Comes Next for the Sector. Traditional exchanges — Nasdaq, the New York Stock Exchange — are still building out…

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Tokenization stocks got hit Friday. Another regulatory delay out of Washington rattled investor confidence in the blurry space where crypto meets traditional securities.

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Bullish's stock — ticker BLSH — fell roughly 8% early in the session, wiping out gains the company had built on the back of a solid second-quarter earnings report.

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The SEC had been working toward what the industry calls an "innovation exemption" — basically a regulatory carve-out designed to make it easier to trade tokenized securities…

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And it's not just stocks that felt it. Uniswap's UNI token dropped 7% over 24 hours, making it the weakest performer in the CoinDesk 20 Index.

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The broader market didn't really share the pain. Nasdaq 100, S&P 500, Bitcoin — all pretty much flat on the day. The selloff was concentrated and specific.

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More context: SEC Tokenization Exemption Stuck in Limbo as CLARITY Act Hits Senate Wall

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But "temporary" can mean a lot of things. The CLARITY Act is still being debated, and questions about which regulatory body actually has authority over tokenized products haven't…

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The cancellation of the SEC meeting stings because that meeting was supposed to deliver something concrete. Investment contract rules for crypto assets.

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Traditional exchanges — Nasdaq, the New York Stock Exchange — are still building out round-the-clock trading infrastructure.

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Read also: Copper Markets US Joins FINRA and SEC Roster, Eyes Institutional Crypto Push

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Circle's position is worth watching. With $3 billion in USYC assets and USDC's role as a stablecoin backbone for much of the tokenized finance space, any further regulatory fog…

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Maybe they still will. But the canceled meeting, the White House pushback, the unresolved CLARITY Act debate — it all adds up to a longer wait than most in the industry were…

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