Global stock exchanges warn the SEC’s “innovation exemption” could weaken investor protections.
Exchanges caution that even if new SEC rules boost Bitcoin’s institutional adoption, innovation should prioritize market integrity.

A coalition of leading stock exchanges, involving Nasdaq and Germany’s Deutsche Boerse, has urged the U.S. Securities and Exchange Commission (SEC) to proceed with caution on its proposed “innovation exemption” for crypto firms. The term “innovation exemption” is proposed by the SEC, which allows crypto firms to experiment with new financial products, like tokenized stocks, without full traditional registration, while still under limited regulatory oversight.

The exemption is currently under development by SEC Chair Paul Atkins. Atkins’s proposal would allow unregistered companies to experiment with tokenized stocks and crypto tokens entitled to listed equities without full broker-dealer registration. He thinks that this special pass will help the U.S. stay ahead in blockchain technology. However, the traditional exchanges say safety must come first.

For more context, in a Nov. 21 letter, the World Federation of Exchanges (WFE), representing major global markets, acknowledged tokenization as a “natural evolution in capital markets” and expressed support for innovation.

Do The New SEC Rules Put the Markets at Risk?

As noted above, while the U.S. Securities and Exchange Commission (SEC) is considering an “innovation exemption” that could boost adoption and institutional participation, it has prompted caution from traditional exchanges.

Speaking to Reuters in an interview, World Federation of Exchanges (WFE) CEO Nandini Sukumar stated that:

“The SEC should avoid granting exemptions to firms attempting to bypass regulatory principles that have safeguarded markets for decades.”

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Filed under: Bitcoin - @ November 27, 2025 1:20 pm