the SEC just made one of the most significant steps towards mainstream blockchain adoption.
TLDR their "innovation exemption" will let crypto companies issue tokens and launch blockchain-based financial products without having to immediately comply with the SEC's full regulations.
why it's so important for crypto adoption:
1. tokenised stocks
blockchain companies will be able to create digital tokens that track the price of a traditional public company's stock, even without that company's consent or backing.
this means anyone, anywhere can invest in public companies 24/7.
2. trillions of dollars of new inflows
tokenised stocks would allow anyone, anywhere to invest in us equity markets (even those who currently cannot invest in us equities because of their geography). trillions of new dollars will flow into the markets, and it'll all be happening on-chain.
3. borrow without a bank (no credit check required)
crypto holders will be able to use tokenised equities (eg a tokenised share of amazon) as collateral to borrow crypto (via defi lending protocols). this would allow crypto holders to borrow without traditional banks or credit checks.
4. 24/7 stock trading on-chain
anyone will be able to trade tokenised shares of
$AAPL,
$NVDA or
$TSLA at anytime, even outside traditional stock market hours, marking an important convergence between stock and crypto markets.