SEC Chairman Paul S. Atkins has proposed an "innovation exemption" to facilitate the trading of tokenized securities. Speaking at the Investor Advisory Committee meeting, Atkins highlighted the benefits of tokenization, such as improved settlement efficiency and reduced intermediary involvement. The proposed exemption would allow limited-time trading of certain tokenized securities, aiding in the development of a long-term regulatory framework. The SEC's Crypto Task Force has been actively gathering market feedback over the past 13 months to refine the exemption's design.