According to CoinMeta, SEC recently introduced an "innovation exemption" that allows certain tokenized stocks to be traded directly on the blockchain. This move was made after Congress failed to advance the Clear Act, with the aim of bringing clarity to digital assets and ending the old policy of "enforcement-based regulation." SEC and CFTC jointly issued an explanation distinguishing between securities and commodities and proposed a regulatory framework for crypto assets. Since Congress failed to pass the bill, SEC decided to use its own legal authority to make progress. The order grants two temporary exemptions: one exempts certain trading venues from being classified as traditional stock "exchanges," and the other exempts certain liquidity providers from being considered "traders." These exemptions eliminate the legal gray areas that hindered blockchain stock trading in the United States. The exemptions are valid for five years and come with strict conditions. SEC stated that this is a transitional measure, and regulatory authorities are still formulating long-term rules.