SEC Opens Tokenized Stock Lane as Senate Kills CLARITY Act

Regulatory clarity arrived in fragments. The SEC carved out a five-year path for tokenized US stocks on permissioned platforms, while the Senate rejected the CLARITY Act in a 50-49 vote, leaving broader market structure rules to agency rulemaking. On the same day, NYSE parent ICE explored Avalanche for tokenized equity settlement, and Crypto.com's Nadex registered to pursue single-stock futures. Institutional activity continued: Grayscale split its Zcash ETF shares after rapid asset growth, dtcpay secured $25 million from SBI Group, and XRP swung on whale accumulation after falling below $1.30.

Developing from earlier

The SEC's five-year Innovation Exemption lets Tokenized Securities Venues trade tokenized US stocks on permissioned automated market makers without exchange registration, giving crypto platforms a regulated domestic pathway for the first time. Separately, Grayscale announced a 3-for-1 share split for its Zcash ETF ZCSH effective September 30, after the fund approached $1 billion in assets within weeks of launch. XRP dropped below $1.30 after the failed CLARITY Act vote and a Fed rate hike, then recovered above $1.40 as whales accumulated 1.54 billion tokens over 96 hours. Singapore-based dtcpay closed a $25 million Series A with Japan's SBI Group as a strategic investor, expanding its stablecoin payment products.

Where the reports disagree

The Senate voted 50-49 against advancing the CLARITY Act on September 15, falling short of the 60 votes needed for cloture, leaving crypto market structure oversight to the SEC and CFTC through agency rulemaking. The Senate Banking Committee had approved its version 15-9 and the House passed it 294-134, but bipartisan support collapsed over ethics provisions related to Trump's crypto dealings. NYSE parent ICE is evaluating Avalanche to run a planned 24/7 tokenized securities settlement platform, though no final infrastructure choice has been made. Crypto.com's Nadex filed a Form 1-N acknowledged by the SEC, moving toward single-stock futures offerings through OG.com, but sources differ on whether this represents approval or automatic notice registration.

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19 Sept 2026 — Crypto intelligence brief — Crypto News Intelligence